Old Second Bancorp (NASDAQ:OSBC) & Old National Bancorp (NASDAQ:ONBPP) Head to Head Comparison

Old National Bancorp (NASDAQ:ONBPP) and Old Second Bancorp (NASDAQ:OSBC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Dividends

Old National Bancorp pays an annual dividend of $1.75 per share and has a dividend yield of 7.0%. Old Second Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Old Second Bancorp pays out 16.1% of its earnings in the form of a dividend. Old Second Bancorp has raised its dividend for 1 consecutive years.

Earnings & Valuation

This table compares Old National Bancorp and Old Second Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old National Bancorp	$2.82 billion	N/A	N/A	N/A	N/A
Old Second Bancorp	$401.54 million	3.26	$80.31 million	$1.74	14.62

Old Second Bancorp has lower revenue, but higher earnings than Old National Bancorp.

Insider and Institutional Ownership

67.8% of Old Second Bancorp shares are held by institutional investors. 3.6% of Old Second Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Old National Bancorp and Old Second Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Old National Bancorp	N/A	N/A	N/A
Old Second Bancorp	20.22%	12.85%	1.65%

Analyst Recommendations

This is a summary of current recommendations and price targets for Old National Bancorp and Old Second Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old National Bancorp	0	0	0	0	0.00
Old Second Bancorp	0	1	5	1	3.00

Old Second Bancorp has a consensus price target of $25.40, indicating a potential downside of 0.16%. Given Old Second Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Old Second Bancorp is more favorable than Old National Bancorp.

Summary

Old Second Bancorp beats Old National Bancorp on 10 of the 13 factors compared between the two stocks.

About Old National Bancorp

Old National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. It accepts deposit accounts, including noninterest-bearing demand, interest-bearing checking, negotiable order of withdrawal, savings and money market, and time deposits; and offers loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, agricultural loans, letters of credit, and lease financing. The company also provides debit and automated teller machine cards, telephone access, online banking, and other electronic and mobile banking services; cash management, private banking, brokerage, trust, investment advisory, and other traditional banking services; wealth management, investment, and foreign currency services; and treasury management, merchant, and capital markets services, as well as community development lending and equity investment solutions. The company was founded in 1834 and is headquartered in Evansville, Indiana.

About Old Second Bancorp

Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides community banking services. It offers demand, NOW, money market, savings, time deposit, individual retirement, and checking accounts, as well as certificates of deposit accounts. The company also provides commercial loans; lease financing receivables; commercial real estate loans; construction loans; residential real estate loans, such as residential first mortgage and second mortgage loans; home equity line of credit; consumer loans, including motor vehicle, home improvement, and signature loans; installment and agricultural loans; residential mortgages; and overdraft checking. In addition, it offers safe deposit services; trust and wealth management services; and money orders, cashier’s checks, foreign currency, direct deposits, discount brokerage, debit and credit cards, and other services, as well as acquires the U.S. treasury notes and bonds. Further, the company provides online and mobile banking; corporate cash management products, including remote and mobile deposits capture, investment sweep accounts, zero balance accounts, automated tax payments, automatic teller machines access, telephone banking, lockbox accounts, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, foreign and domestic wire transfers, and vault services for currency and coin; and investment, agency, and custodial services for individual, corporate, and not-for-profit clients. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.