Financial Institutions (FISI) vs. Old National Bancorp (ONB) Head-To-Head Comparison

Financial Institutions (NASDAQ: FISI) and Old National Bancorp (NASDAQ:ONB) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Dividends

Financial Institutions pays an annual dividend of $0.96 per share and has a dividend yield of 2.9%. Old National Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.9%. Financial Institutions pays out 49.5% of its earnings in the form of a dividend. Old National Bancorp pays out 47.3% 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.

Insider & Institutional Ownership

70.2% of Financial Institutions shares are owned by institutional investors. Comparatively, 66.1% of Old National Bancorp shares are owned by institutional investors. 4.3% of Financial Institutions shares are owned by insiders. Comparatively, 1.6% of Old National Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Financial Institutions 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
Financial Institutions $164.84 million 3.16 $33.52 million $1.94 16.91
Old National Bancorp $678.72 million 4.06 $95.72 million $1.10 16.45

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

Profitability

This table compares Financial Institutions and Old National Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Financial Institutions 20.41% 9.10% 0.79%
Old National Bancorp 15.23% 8.18% 1.02%

Risk & Volatility

Financial Institutions has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Financial Institutions and Old National Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Financial Institutions 0 2 1 0 2.33
Old National Bancorp 0 5 3 0 2.38

Financial Institutions currently has a consensus target price of $34.17, suggesting a potential upside of 4.17%. Old National Bancorp has a consensus target price of $19.14, suggesting a potential upside of 5.76%. Given Old National Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Old National Bancorp is more favorable than Financial Institutions.

About Financial Institutions

Financial Institutions, Inc. operates as the holding company for Five Star Bank that provides banking and financial services to individuals, municipalities, and businesses. It operates in two segments, Banking and Non-Banking. The company offers checking and savings account programs, including money market accounts, certificates of deposit, and sweep investments, as well as individual retirement and other qualified plan accounts. It also provides short and medium-term commercial loans for working capital, business expansion, and purchase of equipment; commercial business loans to the agricultural industry for short-term crop production, farm equipment, and livestock financing; commercial mortgage loans to finance the purchase of real property; and one-to-four family residential mortgage loans, home improvement loans, closed-end home equity loans, and home equity lines of credit, as well as consumer loans, such as automobile, recreational vehicle, boat, personal, and deposit account collateralized loans. In addition, the company provides personal insurance, including automobile, homeowners, boat, recreational vehicle, landlord, and umbrella coverage; commercial insurance, such as property, liability, automobile, inland marine, workers compensation, bonds, crop, and umbrella insurance products; and financial services comprising life and disability insurance, Medicare supplements, long-term care, annuities, mutual funds, and retirement programs. Further, it offers customized investment management, investment consulting and advisory, and wealth management services, as well as retirement plan services; and invests in various securities. As of February 28, 2018, the company operated a network of approximately 50 offices throughout Western and Central New York State. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.

About Old National Bancorp

Old National Bancorp operates as the holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. The company offers deposit accounts, including noninterest-bearing demand, NOW, savings and money market, and time deposits; and loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, letters of credit, and lease financing. It also provides debit and ATM cards, telephone access, and online banking, as well as other electronic and mobile banking services; and cash management, private banking, brokerage, trust, and investment advisory services. As of December 31, 2016, the company operated 191 banking centers located primarily in Indiana, Kentucky, Michigan, Wisconsin, and Minnesota. Old National Bancorp was founded in 1834 and is headquartered in Evansville, Indiana.

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