Virginia National Bankshares (OTCMKTS:VABK) vs. Old National Bancorp (NASDAQ:ONB) Financial Survey

Old National Bancorp (NASDAQ:ONBGet Rating) and Virginia National Bankshares (OTCMKTS:VABKGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Institutional and Insider Ownership

76.4% of Old National Bancorp shares are held by institutional investors. Comparatively, 30.3% of Virginia National Bankshares shares are held by institutional investors. 0.7% of Old National Bancorp shares are held by company insiders. Comparatively, 12.3% of Virginia National Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Old National Bancorp and Virginia National Bankshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Old National Bancorp $852.87 million 6.39 $277.54 million $1.06 17.55
Virginia National Bankshares $58.74 million 3.27 $10.07 million $4.04 8.93

Old National Bancorp has higher revenue and earnings than Virginia National Bankshares. Virginia National Bankshares 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

Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Virginia National Bankshares pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. Old National Bancorp pays out 52.8% of its earnings in the form of a dividend. Virginia National Bankshares pays out 29.7% 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. Virginia National Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Old National Bancorp 19.71% 10.06% 1.09%
Virginia National Bankshares 31.97% 14.79% 1.14%

Analyst Recommendations

This is a summary of recent ratings for Old National Bancorp and Virginia National Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Old National Bancorp 0 1 2 0 2.67
Virginia National Bankshares 0 0 0 0 N/A

Old National Bancorp currently has a consensus price target of $21.67, indicating a potential upside of 16.49%. Given Old National Bancorp’s higher possible upside, analysts clearly believe Old National Bancorp is more favorable than Virginia National Bankshares.

Risk & Volatility

Old National Bancorp has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Summary

Old National Bancorp beats Virginia National Bankshares on 8 of the 15 factors compared between the two stocks.

About Old National Bancorp

(Get Rating)

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, 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, health savings, and capital markets services, as well as community development lending and equity investment solutions. As of December 31, 2021, it operated a total of 162 banking centers located primarily in the states of Indiana, Kentucky, Michigan, Minnesota, and Wisconsin. Old National Bancorp was founded in 1834 and is headquartered in Evansville, Indiana.

About Virginia National Bankshares

(Get Rating)

Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial banking services. The company operates through four segments: Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. The company also offers commercial and industrial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. In addition, it provides automated teller machines, internet banking, treasury, and cash management services, as well as merchant and debit card services; and wealth and investment advisory, brokerage, insurance, consulting, and related services. Further, the company offers investment management, corporate trustee, trust and estate administration, IRA administration, house investment management, and custody services. It serves individuals, businesses, and charitable organizations. As of December 31, 2021, the company operated sixteen full-service banking facilities in the cities of Charlottesville, Manassas, Richmond, and Winchester, as well as the counties of Albemarle, Fauquier, and Prince William. Virginia National Bankshares Corporation was founded in 1998 and is headquartered in Charlottesville, Virginia.

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