Head-To-Head Contrast: Hingham Institution for Savings (NASDAQ:HIFS) vs. Orange County Bancorp (NASDAQ:OBT)

Hingham Institution for Savings (NASDAQ:HIFS) and Orange County Bancorp (NASDAQ:OBT) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

49.3% of Hingham Institution for Savings shares are held by institutional investors. Comparatively, 42.6% of Orange County Bancorp shares are held by institutional investors. 9.3% of Orange County Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hingham Institution for Savings and Orange County Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hingham Institution for Savings	0	1	0	0	2.00
Orange County Bancorp	0	2	2	0	2.50

Orange County Bancorp has a consensus target price of $30.25, indicating a potential upside of 1.34%. Given Orange County Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Orange County Bancorp is more favorable than Hingham Institution for Savings.

Dividends

Hingham Institution for Savings pays an annual dividend of $2.52 per share and has a dividend yield of 0.9%. Orange County Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Hingham Institution for Savings pays out 12.3% of its earnings in the form of a dividend. Orange County Bancorp pays out 23.8% 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.

Risk & Volatility

Hingham Institution for Savings has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Orange County Bancorp has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hingham Institution for Savings and Orange County Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hingham Institution for Savings	$217.38 million	N/A	$28.19 million	$20.53	14.40
Orange County Bancorp	$128.82 million	3.10	$27.88 million	$3.02	9.88

Hingham Institution for Savings has higher revenue and earnings than Orange County Bancorp. Orange County Bancorp is trading at a lower price-to-earnings ratio than Hingham Institution for Savings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hingham Institution for Savings and Orange County Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hingham Institution for Savings	19.77%	6.04%	0.59%
Orange County Bancorp	23.51%	15.98%	1.41%

Summary

Orange County Bancorp beats Hingham Institution for Savings on 8 of the 15 factors compared between the two stocks.

About Hingham Institution for Savings

Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. It offers savings, checking, money market, demand, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company provides commercial and residential real estate, construction, home equity, commercial, consumer, and mortgage loans. In addition, it offers ATMs, debit cards, and Internet-based banking services. The company offers its services through a network of offices in Boston; Washington, D.C.; and San Francisco Bay Area. Hingham Institution for Savings was incorporated in 1834 and is headquartered in Hingham, Massachusetts.

About Orange County Bancorp

Orange County Bancorp, Inc., through its subsidiaries, provides commercial and consumer banking products and services, and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments, and individuals. It accepts various deposits, including interest-bearing and noninterest-bearing demand accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company also offers commercial real estate loans, commercial and industrial loans, commercial real estate construction loans, residential real estate loans, home equity loans, and consumer loans. In addition, it provides traditional trust and administration, asset management, financial planning, and wealth management services. The company operates full-service branches and loan production office in Orange, Westchester, Rockland, and Bronx counties in New York. Orange County Bancorp, Inc. was founded in 1892 and is headquartered in Middletown, New York.