Financial Review: BayFirst Financial (NASDAQ:BAFN) & Origin Bancorp (NASDAQ:OBK)

BayFirst Financial (NASDAQ:BAFNGet Free Report) and Origin Bancorp (NASDAQ:OBKGet Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Institutional and Insider Ownership

16.9% of BayFirst Financial shares are held by institutional investors. Comparatively, 54.7% of Origin Bancorp shares are held by institutional investors. 19.2% of BayFirst Financial shares are held by company insiders. Comparatively, 6.2% of Origin Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares BayFirst Financial and Origin Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BayFirst Financial 4.52% 7.12% 0.53%
Origin Bancorp 13.66% 8.17% 0.86%

Dividends

BayFirst Financial pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. BayFirst Financial pays out 28.3% of its earnings in the form of a dividend. Origin Bancorp pays out 22.6% 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

BayFirst Financial has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Origin Bancorp has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares BayFirst Financial and Origin Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BayFirst Financial $118.27 million 0.44 $5.70 million $1.13 11.20
Origin Bancorp $581.73 million 1.76 $83.80 million $2.65 12.43

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

Analyst Recommendations

This is a summary of current ratings and target prices for BayFirst Financial and Origin Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BayFirst Financial 0 0 0 0 N/A
Origin Bancorp 0 1 3 0 2.75

Origin Bancorp has a consensus target price of $33.33, suggesting a potential upside of 1.19%. Given Origin Bancorp’s higher probable upside, analysts plainly believe Origin Bancorp is more favorable than BayFirst Financial.

Summary

Origin Bancorp beats BayFirst Financial on 13 of the 15 factors compared between the two stocks.

About BayFirst Financial

(Get Free Report)

BayFirst Financial Corp. operates as the bank holding company for BayFirst National Bank that provides community banking services for businesses and individuals. The company offers checking, savings, NOW, and money market deposit accounts, as well as certificates of deposit and individual retirement account; and safety deposit boxes. It also provides commercial real estate mortgages; construction and development, working capital, and business loans; auto, boat, and recreational vehicle loans; and residential mortgages, personal lines of credit, and home equity lines of credit. In addition, the company offers mobile and online banking, treasury management, wire transfers, cash management, merchant processing, remote deposit capture, night depositor, online bill payment, courier, retail investment, ACH originations, and other services. It operates full-service banking centers in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, Belleair Bluffs, and Bradenton, Florida. The company was formerly known as First Home Bancorp, Inc. and changed its name to BayFirst Financial Corp. in May 2021. BayFirst Financial Corp. was founded in 1999 and is headquartered in St. Petersburg, Florida.

About Origin Bancorp

(Get Free Report)

Origin Bancorp, Inc. operates as a bank holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, and retail clients in Texas, Louisiana, and Mississippi. It offers noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and offers commercial real estate, construction and land development, consumer, residential real estate, commercial and industrial, mortgage warehouse, and residential mortgage loans. The company also offers personal and commercial property, and casualty insurance products; and Internet banking and voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit boxes, U.S. savings bonds, and automatic account transfer services; and mobile and online banking, treasury management, mortgage origination and servicing facilities, peer-to-peer electronic pay solutions, and personal financial management solutions. The company was founded in 1912 and is headquartered in Ruston, Louisiana.

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