Analyzing Pathfinder Bancorp (NASDAQ:PBHC) & Old National Bancorp (NASDAQ:ONB)

Old National Bancorp (NASDAQ:ONB) and Pathfinder Bancorp (NASDAQ:PBHC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

This table compares Old National Bancorp and Pathfinder Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old National Bancorp	$3.74 billion	2.59	$669.26 million	$2.25	11.26
Pathfinder Bancorp	$48.33 million	1.72	-$1.93 million	($0.21)	-80.83

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

Institutional and Insider Ownership

83.7% of Old National Bancorp shares are held by institutional investors. Comparatively, 26.7% of Pathfinder Bancorp shares are held by institutional investors. 0.7% of Old National Bancorp shares are held by insiders. Comparatively, 15.7% of Pathfinder Bancorp shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old National Bancorp	21.60%	11.80%	1.34%
Pathfinder Bancorp	-1.70%	-1.08%	-0.09%

Dividends

Old National Bancorp pays an annual dividend of $0.58 per share and has a dividend yield of 2.3%. Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Old National Bancorp pays out 25.8% of its earnings in the form of a dividend. Pathfinder Bancorp pays out -190.5% 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. Pathfinder Bancorp has raised its dividend for 1 consecutive years. Pathfinder Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Old National Bancorp has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Pathfinder Bancorp has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old National Bancorp	0	2	12	0	2.86
Pathfinder Bancorp	0	1	0	0	2.00

Old National Bancorp currently has a consensus target price of $29.79, suggesting a potential upside of 17.54%. Given Old National Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Old National Bancorp is more favorable than Pathfinder Bancorp.

Summary

Old National Bancorp beats Pathfinder Bancorp on 13 of the 17 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 Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.