Contrasting Old National Bancorp (NASDAQ:ONB) & QCR (NASDAQ:QCRH)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QCR	0	2	3	1	2.83
Old National Bancorp	0	5	6	1	2.67

QCR presently has a consensus price target of $90.00, suggesting a potential upside of 6.18%. Old National Bancorp has a consensus price target of $26.00, suggesting a potential upside of 13.14%. Given Old National Bancorp’s higher possible upside, analysts plainly believe Old National Bancorp is more favorable than QCR.

Volatility & Risk

QCR has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Dividends

QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.3%. Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. QCR pays out 3.4% of its earnings in the form of a dividend. Old National Bancorp pays out 32.7% 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.

Institutional and Insider Ownership

70.0% of QCR shares are owned by institutional investors. Comparatively, 83.7% of Old National Bancorp shares are owned by institutional investors. 3.7% of QCR shares are owned by insiders. Comparatively, 0.9% of Old National Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares QCR 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
QCR	$597.39 million	2.39	$113.85 million	$7.16	11.84
Old National Bancorp	$2.96 billion	3.04	$539.19 million	$1.71	13.44

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QCR	20.64%	12.04%	1.35%
Old National Bancorp	17.39%	10.42%	1.19%

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.

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.