Critical survey of Old Second Bancorp (NASDAQ:OSBC) and Equity Bancshares (NASDAQ:EQBK)

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Equity Bancshares (NASDAQ:EQBKGet a rating) and Old Second Bancorp (NASDAQ: OSBCGet a rating) are both small cap finance companies, but which is the better company? We’ll compare the two companies based on valuation strength, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares the net margins, return on equity and return on assets of Equity Bancshares and Old Second Bancorp.

Net margins Return on equity return on assets
Equity Banc d’Equity 26.61% 14.14% 1.34%
Former second Bancorp 12.26% 11.41% 0.97%

Institutional and insider ownership

59.1% of Equity Bancshares shares are held by institutional investors. By comparison, 50.8% of shares in Old Second Bancorp are held by institutional investors. 8.1% of Equity Bancshares shares are held by insiders. By comparison, 5.5% of shares in Old Second Bancorp are held by insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.

Risk and Volatility

Equity Bancshares has a beta of 0.73, indicating its stock price is 27% less volatile than the S&P 500. In comparison, Old Second Bancorp has a beta of 1.12, indicating its stock price is 12 % more volatile than the S&P 500.

Dividends

Equity Bancshares pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Old Second Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Equity Bancshares pays 9.5% of its earnings as a dividend. Old Second Bancorp pays 33.3% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Old Second Bancorp has increased its dividend for 1 consecutive years. Old Second Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Notes

This is a summary of the current ratings and recommendations for Equity Bancshares and Old Second Bancorp, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Equity Banc d’Equity 0 0 1 0 3.00
Former second Bancorp 0 0 1 1 3.50

Equity Bancshares currently has a consensus price target of $34.00, suggesting a potential upside of 19.76%. Old Second Bancorp has a consensus price target of $20.25, suggesting a potential upside of 49.12%. Given Old Second Bancorp’s stronger consensus rating and higher likely upside, analysts clearly believe Old Second Bancorp is more favorable than Equity Bancshares.

Valuation and benefits

This table compares the gross earnings, earnings per share (EPS), and valuation of Equity Bancshares and Old Second Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Equity Banc d’Equity $190.21 million 2.43 $52.48 million $3.37 8.42
Former second Bancorp $144.45 million 4.18 $20.04 million $0.60 22.63

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

Summary

Equity Bancshares beats Old Second Bancorp on 9 out of 17 factors compared between the two stocks.

Equity Bancshares Company Profile (Get a rating)

Equity Bancshares, Inc. operates as a banking holding company for Equity Bank which provides a range of banking, mortgage banking and financial services to individuals and businesses. The Company accepts various demand, savings, money market and term deposits. Its lending products include commercial and industrial loans, commercial real estate loans, working capital, term financing, equipment, acquisitions, expansions and improvements, loans, real estate construction, home builders, agricultural loans, government guaranteed loans and other loans. products to national and regional companies, restaurant franchises, hoteliers, real estate developers, manufacturing and industrial companies, agri-food companies and other businesses. The Company’s lending products also include various consumer and commercial consumer loans, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit. , overdraft protection and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer account statements; mobile banking solutions including remote check deposits with mobile bill payment; ticket vending machines; and cash management, wire transfers, automated clearing house and stop payment services. In addition, the Company offers cash management deposit products, such as safe deposit box, remote deposit capture, positive payment, reverse positive payment, account reconciliation services, zero balance accounts and swipe accounts, as well as telephone, mail and personal banking. appointment. As of December 31, 2021, it operated a network of 69 branches in Arkansas, Kansas, Missouri and Oklahoma. The company was founded in 2002 and is based in Wichita, Kansas.

Old Second Bancorp Company Profile (Get a rating)

Former Second Bancorp logoOld Second Bancorp, Inc. operates as a bank holding company for Old Second National Bank which provides community banking services. It provides current, NOW, money market, savings, term deposit, individual retirement and checking accounts, as well as certificates of deposit accounts. The company also offers commercial loans; finance lease receivables; commercial real estate loans; building loans; residential real estate loans, such as residential first and second mortgages; home equity line of credit; consumer loans, including auto, home improvement and signature loans; installment loans and agricultural loans; residential mortgages; and verification of overdrafts. Also, it provides safe deposit box services; trust and wealth management services; and money orders, cashiers checks, foreign currencies, direct deposits, discount brokerage, debit and credit cards and other services, as well as the acquisition of US Treasury bills and bonds. Additionally, the company offers online and mobile banking; corporate cash management products, including remote and mobile deposit capture, investment transfer accounts, zero balance accounts, automated tax payments, ATM access, telephone banking, locked accounts, automated clearinghouse transactions, account reconciliation, controlled disbursements, detailed and general information reporting, foreign and domestic wire transfers and vault services for foreign currency and coins. change ; and investment, agency, and custodial services for individuals, businesses, and nonprofits. It operates through 63 banking centers in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.



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