Virginia National Bankshares (NASDAQ:VABK – Get Free Report) and Old Second Bancorp (NASDAQ:OSBC – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Virginia National Bankshares and Old Second Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Virginia National Bankshares | 0 | 1 | 0 | 0 | 2.00 |
| Old Second Bancorp | 0 | 2 | 4 | 1 | 2.86 |
Old Second Bancorp has a consensus price target of $26.20, indicating a potential upside of 5.35%. Given Old Second Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Old Second Bancorp is more favorable than Virginia National Bankshares.
Volatility & Risk
Virginia National Bankshares has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Old Second Bancorp has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Institutional & Insider Ownership
37.4% of Virginia National Bankshares shares are owned by institutional investors. Comparatively, 67.8% of Old Second Bancorp shares are owned by institutional investors. 14.4% of Virginia National Bankshares shares are owned by insiders. Comparatively, 3.6% of Old Second Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Virginia National Bankshares and Old Second Bancorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Virginia National Bankshares | $83.34 million | 3.19 | $19.26 million | $4.56 | 10.73 |
| Old Second Bancorp | $374.97 million | 3.37 | $80.31 million | $1.74 | 14.29 |
Old Second Bancorp has higher revenue and earnings than Virginia National Bankshares. Virginia National Bankshares 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 Virginia National Bankshares and Old Second Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Virginia National Bankshares | 28.18% | 13.36% | 1.52% |
| Old Second Bancorp | 20.22% | 12.79% | 1.65% |
Dividends
Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. Old Second Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Virginia National Bankshares pays out 31.6% of its earnings in the form of a dividend. Old Second Bancorp pays out 16.1% 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 increased its dividend for 1 consecutive years.
Summary
Old Second Bancorp beats Virginia National Bankshares on 13 of the 18 factors compared between the two stocks.
About Virginia National Bankshares
Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial and retail banking services. The company operates through Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital segments. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. In addition, the company offers commercial and industrial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. Further, it provides automated teller machines, internet banking, treasury, and cash management services; merchant and debit card services; and wealth and investment advisory, and brokerage services. Additionally, the company offers investment management, corporate trustee, trust and estate administration, IRA administration, house investment management, and custody services. It serves individuals, businesses, and charitable organizations in the Charlottesville/Albemarle County, Fauquier County, Manassas, Prince William County, Richmond, and Winchester market areas in Virginia. Virginia National Bankshares Corporation was founded in 1998 and is headquartered in Charlottesville, Virginia.
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.
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