Critical Contrast: Orange County Bancorp (NASDAQ:OBT) versus SVB Financial Group (OTCMKTS:SIVBQ)

SVB Financial Group (OTCMKTS:SIVBQ) and Orange County Bancorp (NASDAQ:OBT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Earnings & Valuation

This table compares SVB Financial Group 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
SVB Financial Group	$7.40 billion	0.00	$1.67 billion	N/A	N/A
Orange County Bancorp	$111.60 million	2.91	$29.48 million	$6.31	9.10

SVB Financial Group has higher revenue and earnings than Orange County Bancorp.

Insider & Institutional Ownership

8.7% of SVB Financial Group shares are held by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are held by institutional investors. 0.6% of SVB Financial Group shares are held by company insiders. Comparatively, 10.5% of Orange County Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for SVB Financial Group and Orange County Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SVB Financial Group	0	0	0	0	N/A
Orange County Bancorp	0	0	1	0	3.00

Orange County Bancorp has a consensus price target of $69.00, suggesting a potential upside of 20.21%. Given Orange County Bancorp’s higher possible upside, analysts clearly believe Orange County Bancorp is more favorable than SVB Financial Group.

Risk & Volatility

SVB Financial Group has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Profitability

This table compares SVB Financial Group and Orange County Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SVB Financial Group	N/A	N/A	N/A
Orange County Bancorp	24.81%	21.15%	1.41%

Summary

Orange County Bancorp beats SVB Financial Group on 8 of the 11 factors compared between the two stocks.

About SVB Financial Group

SVB Financial Group, a diversified financial services company, offers various banking and financial products and services. It operates through four segments: Silicon Valley Bank, SVB Private, SVB Capital, and SVB Securities. The Silicon Valley Bank segment provides commercial banking products and services, including credit, treasury management, foreign exchange, trade finance, and other financial products and services. This segment also offers traditional term, growth capital term, and equipment loans, asset-based loans, revolving lines of credit, warehouse facilities, recurring revenue and acquisition finance facilities, mezzanine lending, corporate working capital facilities, and credit card programs; treasury management products and services; business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts; receivables services, which include merchant services, remote capture, lockbox, and fraud control services; wire transfer and automated clearing house payment services; business bill pay, credit and debit cards, account analysis, and disbursement services. In addition, it offers foreign exchange and trade finance products and services; letters of credit; and investment services and solutions. The SVB Private segment offers mortgages, home equity lines of credit, restricted and private stock loans, capital call lines of credit, and other secured and unsecured lending products; planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services; and real estate secured loans. The SVB Capital segment provides venture capital investment services. The SVB Securities segment provides investment banking services; products and services, including capital raising, merger and acquisition advisory, equity research, and sales and trading. The company was founded in 1983 and is headquartered in Santa Clara, California. On March 17, 2023, SVB Financial Group, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

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.