Citizens Financial Services (NASDAQ:CZFS – Get Free Report) and Orange County Bancorp (NASDAQ:OBT – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.
Valuation and Earnings
This table compares Citizens Financial Services and Orange County Bancorp”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Citizens Financial Services | $173.51 million | 2.19 | $36.57 million | $8.55 | 9.25 |
| Orange County Bancorp | $126.56 million | 3.89 | $41.61 million | $3.55 | 10.35 |
Orange County Bancorp has lower revenue, but higher earnings than Citizens Financial Services. Citizens Financial Services is trading at a lower price-to-earnings ratio than Orange County Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Citizens Financial Services pays an annual dividend of $2.04 per share and has a dividend yield of 2.6%. Orange County Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.0%. Citizens Financial Services pays out 23.9% of its earnings in the form of a dividend. Orange County Bancorp pays out 20.3% 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.
Risk and Volatility
Citizens Financial Services has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.
Insider & Institutional Ownership
22.5% of Citizens Financial Services shares are held by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are held by institutional investors. 5.5% of Citizens Financial Services shares are held by company insiders. Comparatively, 8.2% of Orange County Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Citizens Financial Services and Orange County Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Citizens Financial Services | 23.31% | 12.06% | 1.33% |
| Orange County Bancorp | 30.80% | 16.44% | 1.75% |
Analyst Ratings
This is a summary of current ratings and price targets for Citizens Financial Services and Orange County Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Citizens Financial Services | 0 | 1 | 1 | 1 | 3.00 |
| Orange County Bancorp | 0 | 0 | 2 | 2 | 3.50 |
Orange County Bancorp has a consensus target price of $43.25, suggesting a potential upside of 17.75%. Given Orange County Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Orange County Bancorp is more favorable than Citizens Financial Services.
Summary
Orange County Bancorp beats Citizens Financial Services on 14 of the 17 factors compared between the two stocks.
About Citizens Financial Services
Citizens Financial Services, Inc., a bank holding company, provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, Pennsylvania.
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.
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