NBT Bancorp (NASDAQ: NBTB) and Oritani Financial Corp. (NASDAQ:ORIT) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitabiliy, analyst recommendations, institutional ownership, risk and dividends.

Analyst Ratings

This is a breakdown of recent recommendations for NBT Bancorp and Oritani Financial Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NBT Bancorp 1 2 0 0 1.67
Oritani Financial Corp. 0 0 0 0 N/A

NBT Bancorp presently has a consensus price target of $32.33, indicating a potential downside of 14.37%. Given NBT Bancorp’s higher possible upside, equities research analysts plainly believe NBT Bancorp is more favorable than Oritani Financial Corp..

Profitability

This table compares NBT Bancorp and Oritani Financial Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NBT Bancorp 19.58% 8.75% 0.91%
Oritani Financial Corp. 50.00% 17.78% 2.39%

Institutional & Insider Ownership

50.3% of NBT Bancorp shares are owned by institutional investors. Comparatively, 64.6% of Oritani Financial Corp. shares are owned by institutional investors. 2.8% of NBT Bancorp shares are owned by company insiders. Comparatively, 15.3% of Oritani Financial Corp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

NBT Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Oritani Financial Corp. pays an annual dividend of $0.70 per share and has a dividend yield of 4.1%. NBT Bancorp pays out 50.3% of its earnings in the form of a dividend. Oritani Financial Corp. pays out 54.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

This table compares NBT Bancorp and Oritani Financial Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NBT Bancorp $357.74 million 4.59 $79.50 million $1.83 20.63
Oritani Financial Corp. $135.80 million 5.54 $56.22 million $1.29 13.37

NBT Bancorp has higher revenue and earnings than Oritani Financial Corp.. Oritani Financial Corp. is trading at a lower price-to-earnings ratio than NBT Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

NBT Bancorp has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Oritani Financial Corp. has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

About NBT Bancorp

NBT Bancorp Inc. is a financial holding company. The Company conducts its business through NBT Bank, National Association (the Bank) and also through its other subsidiaries, which includes providing commercial banking and financial services to customers in its market area, including central and upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont and Portland, Maine area. The Bank is a commercial bank, which provides a range of financial products to individuals, corporations and municipalities. The Bank offers deposit products, which include demand deposit accounts, negotiable order of withdrawal accounts, money market deposit accounts and certificate of deposit accounts. It offers loan products, which include consumer loans, home equity loans, mortgages and commercial loans. The Bank offers other products and services, such as trust and investment services, and financial planning and life insurance services through its branch network.

About Oritani Financial Corp.

Oritani Financial Corp. is a holding company for Oritani Bank (the Bank). The Bank offers a range of retail and commercial loan and deposit products. The Bank operates in the New Jersey Counties of Bergen, Hudson, Essex and Passaic. The Bank’s loan portfolio includes residential loans, residential commercial real estate loans, credit or grocery retail commercial real estate loans, other commercial real estate loans, and construction and land loans. Its investment securities are classified as held to maturity, including mortgage-backed securities, and available for sale, including equity securities and mortgage-backed securities. Its deposits include checking (non-interest and interest-bearing demand deposits), money market deposit accounts, savings accounts and time deposits. The Bank offers personal banking services, such as mobile banking, and online banking and others services, and business banking services, such as business accounts and business services.

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