Contrasting Old Second Bancorp (NASDAQ:OSBC) and FB Bancorp (NASDAQ:FBLA)

FB Bancorp (NASDAQ:FBLA) and Old Second Bancorp (NASDAQ:OSBC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Risk and Volatility

FB Bancorp has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500. Comparatively, Old Second Bancorp has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FB Bancorp	-0.36%	0.91%	0.22%
Old Second Bancorp	24.50%	12.69%	1.66%

Valuation & Earnings

This table compares FB Bancorp 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
FB Bancorp	$69.94 million	3.92	$1.25 million	($0.01)	-1,717.00
Old Second Bancorp	$401.54 million	3.14	$80.31 million	$2.12	11.68

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

Analyst Recommendations

This is a summary of recent ratings for FB Bancorp and Old Second Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FB Bancorp	0	1	0	0	2.00
Old Second Bancorp	0	2	3	1	2.83

Old Second Bancorp has a consensus price target of $26.75, indicating a potential upside of 7.99%. Given Old Second Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Old Second Bancorp is more favorable than FB Bancorp.

Institutional and Insider Ownership

67.8% of Old Second Bancorp shares are held by institutional investors. 3.8% of FB Bancorp shares are held by company insiders. Comparatively, 3.6% of Old Second Bancorp shares are held 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.

Summary

Old Second Bancorp beats FB Bancorp on 13 of the 15 factors compared between the two stocks.

About FB Bancorp

FB Bancorp Inc. operates as a bank holding company for Fidelity Bank. The Company, through its subsidiaries, provides deposit accounts, mortgages, home equity and consumer loans, credit and debit cards, online and mobile banking, investments and other financial services. FB Bancorp Inc. is based in New Orleans.

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.