Bryn Mawr Bank (BMTC) & Old National Bancorp (NASDAQ:ONB) Critical Comparison

Bryn Mawr Bank (NASDAQ: BMTC) and Old National Bancorp (NASDAQ:ONB) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Bryn Mawr Bank and Old National Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bryn Mawr Bank 0 0 2 0 3.00
Old National Bancorp 0 5 2 0 2.29

Bryn Mawr Bank presently has a consensus price target of $48.50, suggesting a potential upside of 4.75%. Old National Bancorp has a consensus price target of $19.07, suggesting a potential upside of 3.65%. Given Bryn Mawr Bank’s stronger consensus rating and higher possible upside, equities analysts clearly believe Bryn Mawr Bank is more favorable than Old National Bancorp.

Earnings and Valuation

This table compares Bryn Mawr Bank and Old National Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bryn Mawr Bank $171.03 million 5.40 $36.03 million $2.25 20.58
Old National Bancorp $699.96 million 3.56 $134.26 million $1.09 16.88

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

Dividends

Bryn Mawr Bank pays an annual dividend of $0.88 per share and has a dividend yield of 1.9%. Old National Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.8%. Bryn Mawr Bank pays out 39.1% of its earnings in the form of a dividend. Old National Bancorp pays out 47.7% 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.

Volatility & Risk

Bryn Mawr Bank has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

68.7% of Bryn Mawr Bank shares are owned by institutional investors. Comparatively, 73.0% of Old National Bancorp shares are owned by institutional investors. 2.3% of Bryn Mawr Bank shares are owned by insiders. Comparatively, 1.8% of Old National Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Bryn Mawr Bank 21.29% 10.15% 1.17%
Old National Bancorp 21.61% 8.39% 1.05%

Summary

Bryn Mawr Bank beats Old National Bancorp on 9 of the 15 factors compared between the two stocks.

About Bryn Mawr Bank

Bryn Mawr Bank Corporation is the bank holding company of the Bryn Mawr Trust Company (the Bank). The Company and its subsidiaries offer a range of personal and business banking services, consumer and commercial loans, equipment leasing, mortgages, insurance and wealth management services, including investment management, trust and estate administration, retirement planning, custody services, and tax planning and preparation from various location across Montgomery, Delaware, Chester, Philadelphia and Dauphin counties of Pennsylvania, and New Castle county in Delaware. The Company’s segments include Banking and Wealth Management. The Banking segment consists of commercial and retail banking. The Wealth Management segment’s activities include trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and individual retirement accounts (IRA) administration, estate settlement, tax services and brokerage.

About Old National Bancorp

Old National Bancorp is a financial holding company. The Company, through its banking subsidiary, provides a range of services, including commercial and consumer loan and depository services, private banking, brokerage, trust, investment advisory and other traditional banking services. The Company focuses on community banking. The Company’s banking segment operates through its subsidiary, Old National Bank. As of December 31, 2016, Old National Bank operated approximately 203 banking centers located in Indiana, Kentucky, Michigan and Wisconsin. As of December 31, 2016, Old National Bank leased 81 banking centers from unaffiliated third parties. Each of the branches of Old National Bank provide a group of similar community banking services, including products and services, such as commercial, real estate and consumer loans, time deposits, checking and savings accounts, cash management, brokerage, trust and investment advisory services.

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