Old Second Bancorp (NASDAQ: OSBC) and 1st Century Bancshares (NASDAQ:FCTY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Institutional & Insider Ownership
69.2% of Old Second Bancorp shares are held by institutional investors. 3.2% of Old Second Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Old Second Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. 1st Century Bancshares does not pay a dividend. Old Second Bancorp pays out 5.2% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations for Old Second Bancorp and 1st Century Bancshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Old Second Bancorp||0||1||2||0||2.67|
|1st Century Bancshares||0||0||0||0||N/A|
Old Second Bancorp currently has a consensus price target of $12.25, suggesting a potential downside of 15.95%.
Earnings & Valuation
This table compares Old Second Bancorp and 1st Century Bancshares’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Old Second Bancorp||$101.95 million||4.24||$15.68 million||$0.77||18.93|
|1st Century Bancshares||N/A||N/A||N/A||$0.25||N/A|
Old Second Bancorp has higher revenue and earnings than 1st Century Bancshares. 1st Century Bancshares 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.
This table compares Old Second Bancorp and 1st Century Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Old Second Bancorp||19.91%||12.34%||0.99%|
|1st Century Bancshares||3.91%||1.67%||0.15%|
Old Second Bancorp beats 1st Century Bancshares on 9 of the 11 factors compared between the two stocks.
About Old Second Bancorp
Old Second Bancorp, Inc. is a bank holding company. The Company conducts a full service community banking and trust business through its subsidiaries, including Old Second National Bank (the Bank), Old Second Capital Trust I, Old Second Capital Trust II and Old Second Affordable Housing Fund, L.L.C. The Bank’s full service banking businesses include the customary consumer and commercial products and services that banking institutions provide, including demand, negotiable order of withdrawal, money market and individual retirement accounts; commercial, industrial, consumer and real estate lending, including installment loans, agricultural loans, lines of credit and overdraft checking; safe deposit operations, and a range of additional services tailored to the needs of individual customers, such as the acquisition of the United States Treasury notes and bonds, money orders, cashiers’ checks and foreign currency, direct deposit, debit cards, credit cards and other special services.
About 1st Century Bancshares
1st Century Bancshares, Inc. is the bank holding company for 1st Century Bank, National Association (the Bank). The Bank is a full service commercial bank. The Bank’s primary focus is relationship banking to family and middle market businesses, professional service firms, and high net worth individuals, real estate investors and entrepreneurs. It offers various loan products, including business and personal lines of credit and term loans; tenant improvement and equipment financing; bridge and specific purpose loans; commercial, industrial, multi-family residential real estate lending; personal home equity loans and lines of credit, and credit cards for business and personal use. Its deposit products include business checking, money market and certificates of deposit; personal checking, money market and certificates of deposits; attorney-client trust accounts, trust accounts, and cash management. Its loan and deposit activities are based in the Los Angeles metropolitan area.
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