Financial Review: Origin Bancorp (NYSE:OBK) versus WesBanco (NASDAQ:WSBC)

Origin Bancorp (NYSE:OBK) and WesBanco (NASDAQ:WSBC) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Dividends

Origin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. WesBanco pays an annual dividend of $1.52 per share and has a dividend yield of 3.9%. Origin Bancorp pays out 31.2% of its earnings in the form of a dividend. WesBanco pays out 44.2% 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. Origin Bancorp has raised its dividend for 4 consecutive years and WesBanco has raised its dividend for 14 consecutive years. WesBanco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

54.7% of Origin Bancorp shares are held by institutional investors. Comparatively, 61.4% of WesBanco shares are held by institutional investors. 5.3% of Origin Bancorp shares are held by company insiders. Comparatively, 2.1% of WesBanco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Origin Bancorp has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, WesBanco has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Origin Bancorp and WesBanco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Bancorp	0	3	5	0	2.62
WesBanco	0	5	2	0	2.29

Origin Bancorp currently has a consensus price target of $58.00, suggesting a potential upside of 9.37%. WesBanco has a consensus price target of $43.60, suggesting a potential upside of 11.42%. Given WesBanco’s higher possible upside, analysts plainly believe WesBanco is more favorable than Origin Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Origin Bancorp	16.26%	7.97%	1.00%
WesBanco	23.70%	9.59%	1.33%

Valuation & Earnings

This table compares Origin Bancorp and WesBanco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Bancorp	$597.80 million	2.74	$75.20 million	$3.20	16.57
WesBanco	$1.44 billion	2.61	$223.10 million	$3.44	11.38

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

Summary

WesBanco beats Origin Bancorp on 10 of the 17 factors compared between the two stocks.

About Origin Bancorp

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, high net worth individuals, 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, residential mortgage, and paycheck protection program 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 box, U.S. savings bonds, and automatic account transfer services; and treasury management, mortgage origination and servicing facilities, peer-to-peer electronic pay solutions, and personal financial management solutions. As of December 31, 2021, it operated 44 banking centers. The company was founded in 1912 and is headquartered in Ruston, Louisiana.

About WesBanco

WesBanco, Inc. operates as the bank holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, mortgage banking, and insurance services to individuals and businesses in the United States. The company operates through two segments, Community Banking, and Trust and Investment Services. It offers commercial demand, individual demand, and time deposit accounts; commercial, mortgage and individual installment loans; retail loans, such as residential real estate mortgage loans, home equity lines of credit, and loans for other consumer purposes; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and various non-traditional offerings, such as insurance and securities brokerage services. The company also provides trust services; and various alternative investment products, including mutual funds and annuities. In addition, it acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.