Financial Contrast: Summit State Bank (NASDAQ:SSBI) & Orange County Bancorp (NASDAQ:OBT)

Orange County Bancorp (NASDAQ:OBT) and Summit State Bank (NASDAQ:SSBI) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

42.5% of Orange County Bancorp shares are owned by institutional investors. 8.2% of Orange County Bancorp 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orange County Bancorp	30.80%	16.44%	1.75%
Summit State Bank	3.87%	N/A	N/A

Earnings and Valuation

This table compares Orange County Bancorp and Summit State Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange County Bancorp	$158.13 million	3.32	$41.61 million	$3.55	11.04
Summit State Bank	$58.82 million	1.49	$6.80 million	$0.34	37.96

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

Analyst Recommendations

This is a breakdown of recent ratings for Orange County Bancorp and Summit State Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange County Bancorp	0	1	3	0	2.75
Summit State Bank	0	1	0	0	2.00

Orange County Bancorp currently has a consensus target price of $39.25, indicating a potential upside of 0.15%. Given Orange County Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Orange County Bancorp is more favorable than Summit State Bank.

Risk & Volatility

Orange County Bancorp has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Summit State Bank has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Summary

Orange County Bancorp beats Summit State Bank on 13 of the 14 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 Summit State Bank

Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.