Reviewing Origin Bancorp (OBNK) and Atlantic Capital Bancshares (ACBI)

Origin Bancorp (NASDAQ:OBNK) and Atlantic Capital Bancshares (NASDAQ:ACBI) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Earnings & Valuation

This table compares Origin Bancorp and Atlantic Capital Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Origin Bancorp $181.78 million 4.79 $14.66 million N/A N/A
Atlantic Capital Bancshares $112.46 million 3.85 -$3.72 million $0.53 31.26

Origin Bancorp has higher revenue and earnings than Atlantic Capital Bancshares.

Analyst Recommendations

This is a summary of current recommendations and price targets for Origin Bancorp and Atlantic Capital Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Origin Bancorp 0 1 1 1 3.00
Atlantic Capital Bancshares 0 1 4 0 2.80

Origin Bancorp presently has a consensus target price of $42.67, suggesting a potential upside of 15.85%. Atlantic Capital Bancshares has a consensus target price of $19.50, suggesting a potential upside of 17.68%. Given Atlantic Capital Bancshares’ higher possible upside, analysts clearly believe Atlantic Capital Bancshares is more favorable than Origin Bancorp.

Insider and Institutional Ownership

45.1% of Origin Bancorp shares are held by institutional investors. Comparatively, 84.1% of Atlantic Capital Bancshares shares are held by institutional investors. 3.4% of Atlantic Capital Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Origin Bancorp and Atlantic Capital Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Origin Bancorp 20.57% 9.99% 1.02%
Atlantic Capital Bancshares 3.55% 6.95% 0.78%

Dividends

Origin Bancorp pays an annual dividend of $0.13 per share and has a dividend yield of 0.4%. Atlantic Capital Bancshares does not pay a dividend.

Summary

Origin Bancorp beats Atlantic Capital Bancshares on 9 of the 13 factors compared between the two stocks.

About Origin Bancorp

Origin Bancorp, Inc. operates as the holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, high net worth individuals, and retail clients in Louisiana, Texas, and Mississippi. It offers accepts noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and grants single and multi-family real estate, residential construction, and commercial building loans, as well as loans to small and medium-sized businesses, and consumers. The company also offers personal and commercial property, and casualty insurance products; products and services, including Internet banking and voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit boxes, U.S. savings, bonds and automatic account transfers; and mortgage origination and servicing. As of April 10, 2018, it operated approximately 40 banking centers. The company was founded in 1912 and is headquartered in Ruston, Louisiana.

About Atlantic Capital Bancshares

Atlantic Capital Bancshares, Inc. operates as the holding company for Atlantic Capital Bank, N.A. that provides commercial banking products and services in the United States. The company offers NOW, money market, savings, checking, time, Internet and brokered, and demand deposits; working capital and equipment loans, loans supported by owner-occupied real estate, revolving lines of credit, term loans, letters of credit, installment and term loans, and home equity lines of credit; residential mortgage loans; and commercial real estate loans, including secured construction loans, secured mini-permanent loans, and secured or unsecured lines of credit. It also provides trust and wealth management, treasury management, and depository services; electronic payment services to payroll companies and other high transaction volume clients; capital market services; small business administration and franchise program loans; and online and mobile banking services. The company serves corporate and business clients in various industry sectors, such as industrial and manufacturing, financial services, business services, not-for-profit, consumer service, and retail; and public real estate investment trusts, corporate and commercial real estate clients, and other private clients. It operates through 15 branches located primarily in the metropolitan areas of Atlanta, Georgia; and Chattanooga and Knoxville, Tennessee. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

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