Comparing QCR (NASDAQ:QCRH) and Orange County Bancorp (NASDAQ:OBT)

Orange County Bancorp (NASDAQ:OBT) and QCR (NASDAQ:QCRH) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Orange County Bancorp and QCR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orange County Bancorp	19.47%	15.51%	1.12%
QCR	19.06%	12.68%	1.35%

Valuation & Earnings

This table compares Orange County Bancorp and QCR”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange County Bancorp	$107.63 million	2.44	$27.88 million	$2.47	9.34
QCR	$332.65 million	3.29	$113.85 million	$6.65	9.74

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

Dividends

Orange County Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.3%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Orange County Bancorp pays out 21.1% of its earnings in the form of a dividend. QCR pays out 3.6% 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

Orange County Bancorp has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Insider and Institutional Ownership

42.5% of Orange County Bancorp shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 9.3% of Orange County Bancorp shares are owned by insiders. Comparatively, 3.7% of QCR shares are owned 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 Ratings

This is a breakdown of recent ratings and target prices for Orange County Bancorp and QCR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange County Bancorp	0	0	1	0	3.00
QCR	0	0	3	0	3.00

Orange County Bancorp presently has a consensus price target of $35.50, suggesting a potential upside of 53.88%. QCR has a consensus price target of $85.33, suggesting a potential upside of 31.73%. Given Orange County Bancorp’s higher possible upside, research analysts plainly believe Orange County Bancorp is more favorable than QCR.

Summary

QCR beats Orange County Bancorp on 10 of the 15 factors compared between the two stocks.

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.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.