BNCCORP (OTCMKTS:BNCC) & Old Second Bancorp (NASDAQ:OSBC) Critical Comparison

BNCCORP (OTCMKTS:BNCC) and Old Second Bancorp (NASDAQ:OSBC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BNCCORP	15.39%	8.30%	0.87%
Old Second Bancorp	18.89%	13.10%	1.60%

Insider & Institutional Ownership

67.8% of Old Second Bancorp shares are owned by institutional investors. 28.4% of BNCCORP shares are owned by company insiders. Comparatively, 3.8% of Old Second Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for BNCCORP and Old Second Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNCCORP	0	0	0	0	0.00
Old Second Bancorp	0	1	4	1	3.00

Old Second Bancorp has a consensus target price of $21.63, suggesting a potential upside of 13.82%. Given Old Second Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Old Second Bancorp is more favorable than BNCCORP.

Volatility & Risk

BNCCORP has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Old Second Bancorp has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNCCORP	$52.44 million	2.10	$7.93 million	$2.50	12.40
Old Second Bancorp	$311.24 million	3.22	$85.26 million	$1.51	12.58

Old Second Bancorp has higher revenue and earnings than BNCCORP. BNCCORP 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.

Summary

Old Second Bancorp beats BNCCORP on 12 of the 15 factors compared between the two stocks.

About BNCCORP

BNCCORP, Inc. operates as the bank holding company for BNC National Bank that provides community banking, retail and mortgage banking, and wealth management services to businesses and consumers. The company offers commercial banking services, including business financing, commercial real estate lending, small business administration loans, business checking, cash management, corporate credit cards, and merchant services to small to middle-market businesses. It also provides retail and mortgage banking services, such as personal checking and savings products, personal loans, and card services; and residential loans through a consumer direct channel, as well as a retail channel. In addition, the company offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory services. It offers community banking and wealth management services through 11 locations in Arizona and North Dakota; and mortgage banking services through 7 locations in Arizona, North Dakota, Illinois, and Kansas. The company was incorporated in 1987 and is headquartered in Bismarck, North Dakota.

About Old Second Bancorp

Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides community banking services. It offers demand, NOW, money market, savings, time deposit, individual retirement, and checking accounts, as well as certificates of deposit accounts. The company also provides commercial loans; lease financing receivables; commercial real estate loans; construction loans; residential real estate loans, such as residential first mortgage and second mortgage loans; home equity line of credit; consumer loans, including motor vehicle, home improvement, and signature loans; installment and agricultural loans; residential mortgages; and overdraft checking. In addition, it offers safe deposit services; trust and wealth management services; and money orders, cashier’s checks, foreign currency, direct deposits, discount brokerage, debit and credit cards, and other services, as well as acquires the U.S. treasury notes and bonds. Further, the company provides online and mobile banking; corporate cash management products, including remote and mobile deposits capture, investment sweep accounts, zero balance accounts, automated tax payments, automatic teller machines access, telephone banking, lockbox accounts, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, foreign and domestic wire transfers, and vault services for currency and coin; and investment, agency, and custodial services for individual, corporate, and not-for-profit clients. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.