Comparison of Old Second Bancorp (NASDAQ:OSBC) and First Interstate BancSystem (NASDAQ:FIBK)

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Old Second Bancorp (NASDAQ:OSBC – Get Rating) and First Interstate BancSystem (NASDAQ:FIBK – Get Rating) are both finance companies, but which is the best investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Risk and Volatility

Old Second Bancorp has a beta of 1.11, suggesting its stock price is 11% more volatile than the S&P 500. By comparison, First Interstate BancSystem has a beta of 1.04, suggesting its stock price is 4% more volatile than the S&P 500.

Benefits and evaluation

This chart compares the revenue, earnings per share, and valuation of Old Second Bancorp and First Interstate BancSystem.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Former second Bancorp $144.45 million 4.50 $20.04 million $0.60 24.37
First interstate banking system $656.00 million 5.78 $192.10 million $1.92 18.02

First Interstate BancSystem has higher revenue and earnings than Old Second Bancorp. First Interstate BancSystem 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.

Profitability

This table compares the net margins, return on equity and return on assets of Old Second Bancorp and First Interstate BancSystem.

Net margins Return on equity return on assets
Former second Bancorp 12.26% 11.41% 0.97%
First interstate banking system 14.78% 7.09% 0.73%

Dividends

Old Second Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. First Interstate BancSystem pays an annual dividend of $1.64 per share and has a dividend yield of 4.7%. Old Second Bancorp pays 33.3% of its profits as a dividend. First Interstate BancSystem pays 85.4% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future. Old Second Bancorp has increased its dividend for 1 consecutive year and First Interstate BancSystem has increased its dividend for 9 consecutive years. First Interstate BancSystem is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

50.8% of shares in Old Second Bancorp are held by institutional investors. By comparison, 69.4% of First Interstate BancSystem’s shares are held by institutional investors. 5.5% of shares in Old Second Bancorp are held by insiders. By comparison, 6.4% of First Interstate BancSystem’s shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds, and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Old Second Bancorp and First Interstate BancSystem, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Former second Bancorp 0 0 1 1 3.50
First interstate banking system 0 0 3 0 3.00

Old Second Bancorp currently has a consensus price target of $19.00, indicating a potential upside of 30.05%. First Interstate BancSystem has a consensus price target of $44.00, indicating a potential upside of 27.09%. Given Old Second Bancorp’s stronger consensus rating and higher upside potential, analysts clearly believe that Old Second Bancorp is more favorable than First Interstate BancSystem.

Summary

First Interstate BancSystem beats Old Second Bancorp on 10 out of 18 factors compared between the two stocks.

About Old Second Bancorp (Get a rating)

Old 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 services; 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. cash ; 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.

About First Interstate BancSystem (Get a rating)

First Interstate BancSystem logoFirst Interstate BancSystem, Inc. operates as a bank holding company for First Interstate Bank which provides a range of banking products and services in the United States. It offers various traditional deposit products, including checks, savings deposits and term deposits; and repurchase agreements primarily for commercial and municipal depositors. The Company also offers real estate loans including commercial real estate, construction, residential, agricultural and other real estate loans; consumer loans including direct personal loans, credit card loans and lines of credit and indirect loans; variable and fixed rate commercial loans for small and medium sized manufacturing, wholesale, retail and service businesses for working capital needs and business expansion; and agricultural loans. Additionally, it provides a range of trust, employee benefits, investment management, insurance, agency and custodial services to individuals, businesses and non-profit organizations. In addition, the Company provides marketing, credit review, loan servicing, credit card issuance and servicing, mortgage sales and servicing, indirect purchase and processing of consumer loans, loan collection and other operational services, as well as online and mobile banking. It serves individuals, businesses, municipalities, and other entities in a variety of industries, including agriculture, construction, education, energy, government services, healthcare, hospitality, housing, l mining, professional services, real estate development, retail, technology, tourism and wholesale. Trade. As of December 31, 2021, it operated 147 banking offices, including individual drive-through facilities in communities in Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. The company was incorporated in 1971 and is based in Billings, Montana.



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