MidWestOne Financial Group (NASDAQ:MOFG) vs. Old National Bancorp (NASDAQ:ONB) Head to Head Survey

MidWestOne Financial Group (NASDAQ:MOFG) and Old National Bancorp (NASDAQ:ONB) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for MidWestOne Financial Group and Old National Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MidWestOne Financial Group	0	4	1	0	2.20
Old National Bancorp	0	3	7	0	2.70

MidWestOne Financial Group presently has a consensus target price of $40.50, indicating a potential downside of 17.87%. Old National Bancorp has a consensus target price of $27.50, indicating a potential upside of 18.15%. Given Old National Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Old National Bancorp is more favorable than MidWestOne Financial Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MidWestOne Financial Group	16.66%	10.22%	0.96%
Old National Bancorp	17.91%	10.75%	1.22%

Dividends

MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 2.0%. Old National Bancorp pays an annual dividend of $0.58 per share and has a dividend yield of 2.5%. MidWestOne Financial Group pays out 34.5% of its earnings in the form of a dividend. Old National Bancorp pays out 32.4% 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. Old National Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

65.4% of MidWestOne Financial Group shares are owned by institutional investors. Comparatively, 83.7% of Old National Bancorp shares are owned by institutional investors. 2.5% of MidWestOne Financial Group shares are owned by insiders. Comparatively, 0.9% of Old National Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

MidWestOne Financial Group has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Earnings & Valuation

This table compares MidWestOne Financial Group and Old National Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MidWestOne Financial Group	$238.84 million	4.26	-$60.29 million	$2.81	17.55
Old National Bancorp	$2.52 billion	3.56	$669.26 million	$1.79	13.00

Old National Bancorp has higher revenue and earnings than MidWestOne Financial Group. Old National Bancorp is trading at a lower price-to-earnings ratio than MidWestOne Financial Group, indicating that it is currently the more affordable of the two stocks.

Summary

Old National Bancorp beats MidWestOne Financial Group on 11 of the 16 factors compared between the two stocks.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.

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.