Reviewing FirstSun Capital Bancorp (NASDAQ:FSUN) and Old Second Bancorp (NASDAQ:OSBC)

Old Second Bancorp (NASDAQ:OSBC) and FirstSun Capital Bancorp (NASDAQ:FSUN) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Volatility and Risk

Old Second Bancorp has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, FirstSun Capital Bancorp has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Valuation & Earnings

This table compares Old Second Bancorp and FirstSun Capital Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old Second Bancorp	$401.54 million	2.60	$80.31 million	$1.63	12.17
FirstSun Capital Bancorp	$569.65 million	1.93	$75.63 million	$3.46	11.41

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

Analyst Recommendations

This is a breakdown of current ratings for Old Second Bancorp and FirstSun Capital Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old Second Bancorp	0	1	4	0	2.80
FirstSun Capital Bancorp	0	1	4	1	3.00

Old Second Bancorp currently has a consensus target price of $22.63, suggesting a potential upside of 14.04%. FirstSun Capital Bancorp has a consensus target price of $43.33, suggesting a potential upside of 9.76%. Given Old Second Bancorp’s higher possible upside, research analysts plainly believe Old Second Bancorp is more favorable than FirstSun Capital Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old Second Bancorp	20.00%	13.36%	1.65%
FirstSun Capital Bancorp	17.19%	9.12%	1.19%

Insider and Institutional Ownership

67.8% of Old Second Bancorp shares are owned by institutional investors. 3.8% of Old Second Bancorp shares are owned by company insiders. Comparatively, 12.5% of FirstSun Capital Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Old Second Bancorp beats FirstSun Capital Bancorp on 8 of the 13 factors compared between the two stocks.

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.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp engages in the provision of commercial banking services. It operates through the following segments: Banking, Mortgage Operations, and Corporate. The Banking segment consists of loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell and hold. The company is founded on November 9, 1981 headquartered in Denver, CO.