Bank of Marin Bancorp (NASDAQ:BMRC) versus Old National Bancorp (NASDAQ:ONB) Critical Contrast

Bank of Marin Bancorp (NASDAQ:BMRC) 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 profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bank of Marin Bancorp and Old National Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Marin Bancorp	0	5	2	0	2.29
Old National Bancorp	0	3	11	0	2.79

Bank of Marin Bancorp presently has a consensus price target of $31.50, indicating a potential upside of 12.86%. Old National Bancorp has a consensus price target of $30.15, indicating a potential upside of 18.30%. Given Old National Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Old National Bancorp is more favorable than Bank of Marin Bancorp.

Dividends

Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Old National Bancorp pays an annual dividend of $0.58 per share and has a dividend yield of 2.3%. Bank of Marin Bancorp pays out -109.9% of its earnings in the form of a dividend. Old National Bancorp pays out 25.8% 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. Bank of Marin Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Bank of Marin Bancorp has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Insider & Institutional Ownership

52.3% of Bank of Marin Bancorp shares are held by institutional investors. Comparatively, 83.7% of Old National Bancorp shares are held by institutional investors. 4.9% of Bank of Marin Bancorp shares are held by company insiders. Comparatively, 0.7% of Old National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Bank of Marin 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
Bank of Marin Bancorp	$163.98 million	2.76	-$35.67 million	($0.91)	-30.67
Old National Bancorp	$3.74 billion	2.61	$669.26 million	$2.25	11.33

Old National Bancorp has higher revenue and earnings than Bank of Marin Bancorp. Bank of Marin 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank of Marin Bancorp	-7.98%	8.51%	0.89%
Old National Bancorp	21.60%	11.80%	1.34%

Summary

Old National Bancorp beats Bank of Marin Bancorp on 12 of the 16 factors compared between the two stocks.

About Bank of Marin Bancorp

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry, and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.

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.