Old Second Bancorp (NASDAQ:OSBC – Get Free Report) and Peoples Bancorp of North Carolina (NASDAQ:PEBK – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.
Profitability
This table compares Old Second Bancorp and Peoples Bancorp of North Carolina’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Old Second Bancorp | 20.22% | 12.79% | 1.65% |
| Peoples Bancorp of North Carolina | 17.25% | 12.75% | 1.15% |
Dividends
Old Second Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Peoples Bancorp of North Carolina pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. Old Second Bancorp pays out 16.1% of its earnings in the form of a dividend. Peoples Bancorp of North Carolina pays out 23.1% 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. Old Second Bancorp has raised its dividend for 1 consecutive years and Peoples Bancorp of North Carolina has raised its dividend for 1 consecutive years.
Risk and Volatility
Analyst Ratings
This is a summary of recent ratings and recommmendations for Old Second Bancorp and Peoples Bancorp of North Carolina, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Old Second Bancorp | 0 | 2 | 5 | 0 | 2.71 |
| Peoples Bancorp of North Carolina | 0 | 0 | 1 | 0 | 3.00 |
Old Second Bancorp presently has a consensus target price of $25.40, indicating a potential downside of 0.70%. Given Old Second Bancorp’s higher possible upside, research analysts plainly believe Old Second Bancorp is more favorable than Peoples Bancorp of North Carolina.
Insider & Institutional Ownership
67.8% of Old Second Bancorp shares are owned by institutional investors. Comparatively, 43.8% of Peoples Bancorp of North Carolina shares are owned by institutional investors. 3.6% of Old Second Bancorp shares are owned by company insiders. Comparatively, 14.5% of Peoples Bancorp of North Carolina shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Old Second Bancorp and Peoples Bancorp of North Carolina”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Old Second Bancorp | $401.54 million | 3.24 | $80.31 million | $1.74 | 14.70 |
| Peoples Bancorp of North Carolina | $114.60 million | 2.11 | $19.83 million | $3.64 | 12.18 |
Old Second Bancorp has higher revenue and earnings than Peoples Bancorp of North Carolina. Peoples Bancorp of North Carolina 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.
Summary
Old Second Bancorp beats Peoples Bancorp of North Carolina on 12 of the 16 factors compared between the two stocks.
About Old Second Bancorp
Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides community banking services. It offers demand, NOW, money market, savings, time deposit, individual retirement, and checking accounts, as well as certificates of deposit accounts. The company also provides commercial loans; lease financing receivables; commercial real estate loans; construction loans; residential real estate loans, such as residential first mortgage and second mortgage loans; home equity line of credit; consumer loans, including motor vehicle, home improvement, and signature loans; installment and agricultural loans; residential mortgages; and overdraft checking. In addition, it offers safe deposit services; trust and wealth management services; and money orders, cashier’s checks, foreign currency, direct deposits, discount brokerage, debit and credit cards, and other services, as well as acquires the U.S. treasury notes and bonds. Further, the company provides online and mobile banking; corporate cash management products, including remote and mobile deposits capture, investment sweep accounts, zero balance accounts, automated tax payments, automatic teller machines access, telephone banking, lockbox accounts, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, foreign and domestic wire transfers, and vault services for currency and coin; and investment, agency, and custodial services for individual, corporate, and not-for-profit clients. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.
About Peoples Bancorp of North Carolina
Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank that provides various banking products and services for individuals and small-to medium-sized businesses. It offers checking, savings, money market, and retirement accounts; certificates of deposits; and credit and debit cards. The company also originates commercial real estate loans, commercial loans, construction and land development loans, and residential mortgage loans; and individual taxpayer identification number mortgage loans, as well as agricultural loans. In addition, it provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services. Further, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts. Peoples Bancorp of North Carolina, Inc. was founded in 1912 and is headquartered in Newton, North Carolina.
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