Analyzing Old Second Bancorp (NASDAQ:OSBC) and Republic First Bancorp (NASDAQ:FRBK)

Old Second Bancorp (NASDAQ:OSBC) and Republic First Bancorp (NASDAQ:FRBK) 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, valuation, earnings, analyst recommendations, dividends and profitability.

Valuation & Earnings

This table compares Old Second Bancorp and Republic First Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Old Second Bancorp $151.39 million 1.53 $39.46 million $1.30 5.98
Republic First Bancorp $128.60 million 1.10 -$3.50 million ($0.06) -40.00

Old Second Bancorp has higher revenue and earnings than Republic First Bancorp. Republic First Bancorp 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Old Second Bancorp and Republic First Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Old Second Bancorp 0 1 3 0 2.75
Republic First Bancorp 0 0 0 0 N/A

Old Second Bancorp presently has a consensus target price of $12.67, suggesting a potential upside of 62.81%. Given Old Second Bancorp’s higher probable upside, analysts plainly believe Old Second Bancorp is more favorable than Republic First Bancorp.

Profitability

This table compares Old Second Bancorp and Republic First Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Old Second Bancorp 20.87% 14.41% 1.47%
Republic First Bancorp -3.42% -1.80% -0.14%

Volatility and Risk

Old Second Bancorp has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Republic First Bancorp has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

71.8% of Old Second Bancorp shares are held by institutional investors. Comparatively, 70.8% of Republic First Bancorp shares are held by institutional investors. 3.8% of Old Second Bancorp shares are held by insiders. Comparatively, 13.5% of Republic First Bancorp shares are held 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.

Summary

Old Second Bancorp beats Republic First Bancorp on 12 of the 13 factors compared between the two stocks.

Old Second Bancorp Company Profile

Old Second Bancorp, Inc. is a bank holding company, which engages in the provision of traditional retail and commercial banking services through its wholly owned subsidiaries. Its services includes personal banking, loans, business banking, and wealth management. The company was founded in 1981 and is headquartered in Aurora, IL.

Republic First Bancorp Company Profile

Republic First Bancorp, Inc. operates as the holding company for Republic First Bank that provides a range of credit and depository banking products and services to individuals and businesses primarily in Greater Philadelphia and Southern New Jersey. It offers consumer and commercial deposit, checking, interest-bearing demand, money market, savings, sweep, and individual retirement accounts, as well as certificates of deposit. The company also provides secured and unsecured commercial loans, real estate loans, construction and land development loans, automobile loans, home improvement loans, mortgages, home equity and overdraft lines of credit, and other products, as well as lockbox services. It has branches; and 25 proprietary ATMs located in its store network. Republic First Bancorp, Inc. was founded in 1987 and is based in Philadelphia, Pennsylvania.

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