Chester Bancorp (OTCMKTS:CNBA) vs. Old National Bancorp (NASDAQ:ONB) Critical Analysis

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

Dividends

Chester Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 15.7%. Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. Old National Bancorp pays out 33.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Chester Bancorp and Old National Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chester Bancorp	N/A	N/A	N/A	N/A	N/A
Old National Bancorp	$2.96 billion	3.03	$539.19 million	$1.69	13.54

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

Insider and Institutional Ownership

83.7% of Old National Bancorp shares are held by institutional investors. 38.8% of Chester Bancorp shares are held by insiders. Comparatively, 0.9% of Old National Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chester Bancorp	N/A	N/A	N/A
Old National Bancorp	17.67%	9.92%	1.13%

Analyst Recommendations

This is a summary of recent ratings and target prices for Chester Bancorp and Old National Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chester Bancorp	0	0	0	0	0.00
Old National Bancorp	0	2	6	1	2.89

Old National Bancorp has a consensus target price of $26.40, suggesting a potential upside of 15.33%. Given Old National Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Old National Bancorp is more favorable than Chester Bancorp.

Volatility & Risk

Chester Bancorp has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Summary

Old National Bancorp beats Chester Bancorp on 10 of the 13 factors compared between the two stocks.

About Chester Bancorp

Chester Bancorp, Inc. operates as the holding company for Chester National Bank that provides various banking products and services to individuals and businesses in Chester, Illinois. It offers checking accounts, such as regular checking, student checking, golden checking, and club checking accounts; savings accounts, including statement savings, Christmas club, and money market accounts; and certificate of deposits and individual retirement accounts. The company also provides loans comprising mortgage, construction, lot, home equity, consumer, and business loans; and reorder check services. It operates two full service offices in Sparta, Illinois; and Perryville, Missouri. Chester Bancorp, Inc. was founded in 1996 and is based in Chester, 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.