Financial analysis: Old Second Bancorp (NASDAQ:OSBC) and Southern States Bancshares (NASDAQ:SSBK)
Former second Bancorp (NASDAQ: OSBC – Get a rating) and Southern States Bancshares (NASDAQ: SSBK – Get a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Benefits and evaluation
This chart compares the gross revenue, earnings per share, and valuation of Old Second Bancorp and Southern States Bancshares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Former second Bancorp||$144.45 million||4.33||$20.04 million||$0.73||19.29|
|Southern States Bank Stocks||$68.58 million||2.96||$18.57 million||N / A||N / A|
Old Second Bancorp has higher revenues and profits than Southern States Bancshares.
This is a summary of current recommendations and price targets for Old Second Bancorp and Southern States Bancshares, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Former second Bancorp||0||0||1||1||3.50|
|Southern States Bank Stocks||0||0||2||0||3.00|
Old Second Bancorp currently has a consensus target price of $19.00, suggesting a potential upside of 34.94%. Southern States Bancshares has a consensus target price of $23.50, suggesting a potential upside of 1.29%. Given Old Second Bancorp’s stronger consensus rating and higher likely upside potential, research analysts clearly believe Old Second Bancorp is more favorable than Southern States Bancshares stock.
This table compares the net margins, return on equity, and return on assets of Old Second Bancorp and Southern States Bancshares.
|Net margins||Return on equity||return on assets|
|Former second Bancorp||13.87%||10.57%||0.96%|
|Southern States Bank Stocks||N / A||N / A||N / A|
Institutional and insider ownership
73.5% of shares in Old Second Bancorp are held by institutional investors. By comparison, 38.9% of Southern States Bancshares shares are held by institutional investors. 4.7% of shares in Old Second Bancorp are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.
Old Second Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Southern States Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Old Second Bancorp pays 27.4% of its profits as a dividend. Old Second Bancorp has increased its dividend for 1 consecutive years.
Old Second Bancorp beats Southern States Bancshares on 12 out of 15 factors compared between the two stocks.
About Old Second Bancorp (Get a rating)
Old Second Bancorp, Inc. operates as a bank holding company for Old Second National Bank which provides community banking services. It provides current, NOW, money market, savings, term deposit, individual retirement and checking accounts, as well as certificates of deposit accounts. The company also offers commercial loans; finance lease receivables; commercial real estate loans; building loans; residential real estate loans, such as residential first and second mortgages; home equity line of credit; consumer loans, including auto, home improvement and signature loans; installment loans and agricultural loans; residential mortgages; and verification of overdrafts. Also, it provides safe deposit box services; trust and wealth management services; and money orders, cashiers checks, foreign currencies, direct deposits, discount brokerage, debit and credit cards and other services, as well as the acquisition of US Treasury bills and bonds. Additionally, the company offers online and mobile banking; corporate cash management products, including remote and mobile deposit capture, investment transfer accounts, zero balance accounts, automated tax payments, ATM access, telephone banking, locked accounts, automated clearinghouse transactions, account reconciliation, controlled disbursements, detailed and general information reporting, foreign and domestic wire transfers and vault services for foreign currency and coins. cash ; and investment, agency, and custodial services for individuals, businesses, and nonprofits. It operates through 63 banking centers in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.
About Southern States Bancshares (Get a rating)
Southern States Bancshares, Inc. operates as a bank holding company for Southern States Bank which provides community banking services to businesses and individuals. It offers various deposit products, such as NOW, savings accounts, money market and non-interest bearing current accounts; certificates of deposit; and term deposits. The Company also offers real estate lending products, which include loans for real estate construction and development, residential mortgages and commercial real estate mortgages; commercial and industrial loans; and direct consumer installment loans, overdrafts and other revolving loans. Additionally, it offers online and mobile banking and ATM services. The company operates 15 offices in Alabama and Georgia. Southern States Bancshares, Inc. was founded in 2007 and is headquartered in Anniston, Alabama.
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