Oritani Financial Corp. (NASDAQ: ORIT) and Cadence Bancorp (NYSE:CADE) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings for Oritani Financial Corp. and Cadence Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oritani Financial Corp. 0 1 0 0 2.00
Cadence Bancorp 0 3 5 0 2.63

Oritani Financial Corp. presently has a consensus target price of $17.00, indicating a potential downside of 1.45%. Cadence Bancorp has a consensus target price of $25.29, indicating a potential upside of 11.64%. Given Cadence Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Cadence Bancorp is more favorable than Oritani Financial Corp..

Earnings and Valuation

This table compares Oritani Financial Corp. and Cadence Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Oritani Financial Corp. $129.13 million 5.86 $48.25 million $1.10 15.68
Cadence Bancorp $355.42 million 5.33 N/A N/A N/A

Oritani Financial Corp. has higher revenue, but lower earnings than Cadence Bancorp.

Dividends

Oritani Financial Corp. pays an annual dividend of $0.70 per share and has a dividend yield of 4.1%. Cadence Bancorp does not pay a dividend. Oritani Financial Corp. pays out 63.6% of its earnings in the form of a dividend.

Profitability

This table compares Oritani Financial Corp. and Cadence Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oritani Financial Corp. 30.85% 10.61% 1.45%
Cadence Bancorp N/A N/A N/A

Insider and Institutional Ownership

63.8% of Oritani Financial Corp. shares are owned by institutional investors. Comparatively, 9.0% of Cadence Bancorp shares are owned by institutional investors. 15.3% of Oritani Financial Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Oritani Financial Corp. beats Cadence Bancorp on 7 of the 13 factors compared between the two stocks.

About Oritani Financial Corp.

Oritani Financial Corp. is a holding company for Oritani Bank (the Bank). The Bank offers a range of retail and commercial loan and deposit products. The Bank operates in the New Jersey Counties of Bergen, Hudson, Essex and Passaic. The Bank’s loan portfolio includes residential loans, residential commercial real estate loans, credit or grocery retail commercial real estate loans, other commercial real estate loans, and construction and land loans. Its investment securities are classified as held to maturity, including mortgage-backed securities, and available for sale, including equity securities and mortgage-backed securities. Its deposits include checking (non-interest and interest-bearing demand deposits), money market deposit accounts, savings accounts and time deposits. The Bank offers personal banking services, such as mobile banking, and online banking and others services, and business banking services, such as business accounts and business services.

About Cadence Bancorp

Cadence Bancorporation is a bank holding company. The Company is focused on middle-market commercial lending, complemented by retail banking and wealth management services, and provides a broad range of banking services to businesses, individuals and business owners. It operates through three segments: Banking, Financial Services and Corporate. Banking Segment offers a range of deposit products and lending services through its Commercial Banking, Retail Banking and Private Banking business lines. Financial Services segment provides an integrated set of investment, retirement, estate, college and business succession planning, retail brokerage, personal and institutional trust services and insurance services through three product lines: Investment Management, Trust Services, and Insurance Services. The Corporate Segment reflects parent-only activities, including debt and capital raising, and intercompany eliminations.

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