Old Second Bancorp (NASDAQ: OSBC) and Prosperity Bancshares (NASDAQ:PRSP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
This is a summary of recent ratings and recommmendations for Old Second Bancorp and Prosperity Bancshares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Old Second Bancorp||0||2||0||0||2.00|
Old Second Bancorp currently has a consensus price target of $12.25, indicating a potential downside of 7.89%. Given Old Second Bancorp’s higher probable upside, analysts clearly believe Old Second Bancorp is more favorable than Prosperity Bancshares.
Valuation & Earnings
This table compares Old Second Bancorp and Prosperity Bancshares’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Old Second Bancorp||$97.41 million||4.05||$18.37 million||$0.62||21.45|
Old Second Bancorp has higher revenue and earnings than Prosperity Bancshares.
Old Second Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Prosperity Bancshares does not pay a dividend. Old Second Bancorp pays out 6.5% of its earnings in the form of a dividend.
This table compares Old Second Bancorp and Prosperity Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Old Second Bancorp||16.82%||10.30%||0.82%|
Insider and Institutional Ownership
65.6% of Old Second Bancorp shares are owned by institutional investors. 3.6% of Old Second Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Old Second Bancorp beats Prosperity Bancshares on 6 of the 9 factors compared between the two stocks.
Old Second Bancorp Company Profile
Old Second Bancorp, Inc. is a bank holding company. The Company conducts a full service community banking and trust business through its subsidiaries, including Old Second National Bank (the Bank), Old Second Capital Trust I, Old Second Capital Trust II and Old Second Affordable Housing Fund, L.L.C. The Bank’s full service banking businesses include the customary consumer and commercial products and services that banking institutions provide, including demand, negotiable order of withdrawal, money market and individual retirement accounts; commercial, industrial, consumer and real estate lending, including installment loans, agricultural loans, lines of credit and overdraft checking; safe deposit operations, and a range of additional services tailored to the needs of individual customers, such as the acquisition of the United States Treasury notes and bonds, money orders, cashiers’ checks and foreign currency, direct deposit, debit cards, credit cards and other special services.
Prosperity Bancshares Company Profile
Prosperity Bancshares, Inc. is a financial holding company, which operates through its bank subsidiary, Prosperity Bank (the Bank). The Bank provides a range of financial products and services to small and medium-sized businesses and consumers. The Company, through the Bank, offers a range of loan and deposit products to its customers. At December 31, 2016, the Bank maintained approximately 598,400 separate deposit accounts including certificates of deposit and 53,600 separate loan accounts. It offered commercial real estate (including multifamily residential) and one- to four-family residential loans, as of December 31, 2016. As of December 31, 2016, the Bank operated 245 full service banking locations; 65 in the Houston area; 29 in the South Texas area; 36 in the Dallas/Fort Worth area; 22 in the East Texas area; 29 in the Central Texas area; 34 in the West Texas area; 16 in the Bryan/College Station area, six in the Central Oklahoma area and eight in the Tulsa, Oklahoma area.
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