Old National Bancorp (NASDAQ:ONB) vs. Hanover Bancorp (NASDAQ:HNVR) Financial Review

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

Dividends

Hanover Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Old National Bancorp pays an annual dividend of $0.58 per share and has a dividend yield of 2.3%. Hanover Bancorp pays out 31.5% of its earnings in the form of a dividend. Old National Bancorp pays out 25.8% 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 National Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and target prices for Hanover Bancorp and Old National Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanover Bancorp	0	2	2	0	2.50
Old National Bancorp	0	3	10	0	2.77

Hanover Bancorp currently has a consensus target price of $28.50, suggesting a potential upside of 6.18%. Old National Bancorp has a consensus target price of $30.25, suggesting a potential upside of 19.80%. Given Old National Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Old National Bancorp is more favorable than Hanover Bancorp.

Earnings and Valuation

This table compares Hanover Bancorp and Old National Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanover Bancorp	$143.32 million	1.32	$7.49 million	$1.27	21.13
Old National Bancorp	$2.82 billion	3.42	$669.26 million	$2.25	11.22

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

Insider & Institutional Ownership

15.0% of Hanover Bancorp shares are owned by institutional investors. Comparatively, 83.7% of Old National Bancorp shares are owned by institutional investors. 24.4% of Hanover Bancorp shares are owned by insiders. Comparatively, 0.7% of Old National Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Hanover Bancorp has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hanover Bancorp	6.71%	6.00%	0.50%
Old National Bancorp	21.60%	11.80%	1.34%

Summary

Old National Bancorp beats Hanover Bancorp on 14 of the 16 factors compared between the two stocks.

About Hanover Bancorp

Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.

About Old National Bancorp

Old National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. It accepts deposit accounts, including noninterest-bearing demand, interest-bearing checking, negotiable order of withdrawal, savings and money market, and time deposits; and offers loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, agricultural loans, letters of credit, and lease financing. The company also provides debit and automated teller machine cards, telephone access, online banking, and other electronic and mobile banking services; cash management, private banking, brokerage, trust, investment advisory, and other traditional banking services; wealth management, investment, and foreign currency services; and treasury management, merchant, and capital markets services, as well as community development lending and equity investment solutions. The company was founded in 1834 and is headquartered in Evansville, Indiana.