Jeffersonville Bancorp (OTCMKTS:JFBC) vs. Old National Bancorp (NASDAQ:ONB) Financial Review

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

Risk and Volatility

Jeffersonville Bancorp has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Jeffersonville Bancorp and Old National Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jeffersonville Bancorp	0	0	0	0	0.00
Old National Bancorp	0	2	5	2	3.00

Old National Bancorp has a consensus target price of $25.90, suggesting a potential upside of 26.59%. Given Old National Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Old National Bancorp is more favorable than Jeffersonville Bancorp.

Earnings and Valuation

This table compares Jeffersonville Bancorp and Old National Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jeffersonville Bancorp	$34.26 million	2.53	$11.33 million	$2.72	7.54
Old National Bancorp	$2.96 billion	2.21	$539.19 million	$1.72	11.90

Old National Bancorp has higher revenue and earnings than Jeffersonville Bancorp. Jeffersonville Bancorp 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.

Dividends

Jeffersonville Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Jeffersonville Bancorp pays out 22.1% of its earnings in the form of a dividend. Old National Bancorp pays out 32.6% 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. Jeffersonville Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

83.7% of Old National Bancorp shares are owned by institutional investors. 8.4% of Jeffersonville Bancorp shares are owned by company insiders. Comparatively, 0.9% of Old National Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jeffersonville Bancorp	33.78%	12.90%	1.74%
Old National Bancorp	18.74%	9.98%	1.14%

Summary

Old National Bancorp beats Jeffersonville Bancorp on 9 of the 17 factors compared between the two stocks.

About Jeffersonville Bancorp

Jeffersonville Bancorp operates as the bank holding company for Jeff Bank that provides community banking services to individuals, small businesses, and local municipal governments primarily in Sullivan County, New York. The company offers various deposit products, such as checking, money market, savings, and NOW, as well as demand and time deposits. It also offers commercial mortgage, farmland, construction, real estate, agricultural, residential mortgage, home equity, consumer, installment, and other consumer loans. The company was founded in 1913 and is based in Jeffersonville, 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.