Northwest Bancshares (NASDAQ: NWBI) and Old National Bancorp (NASDAQ:ONB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

This table compares Northwest Bancshares and Old National Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northwest Bancshares 21.53% 7.78% 0.99%
Old National Bancorp 15.23% 8.18% 1.02%

Volatility & Risk

Northwest Bancshares has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Northwest Bancshares and Old National Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northwest Bancshares 0 2 0 0 2.00
Old National Bancorp 0 6 3 0 2.33

Northwest Bancshares currently has a consensus price target of $17.00, suggesting a potential downside of 3.90%. Old National Bancorp has a consensus price target of $19.25, suggesting a potential upside of 2.94%. Given Old National Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Old National Bancorp is more favorable than Northwest Bancshares.

Dividends

Northwest Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. Old National Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.8%. Northwest Bancshares pays out 81.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Old National Bancorp pays out 47.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

68.3% of Northwest Bancshares shares are held by institutional investors. Comparatively, 66.1% of Old National Bancorp shares are held by institutional investors. 2.2% of Northwest Bancshares shares are held by company insiders. Comparatively, 1.6% of Old National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Northwest Bancshares and Old National Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northwest Bancshares $469.34 million 3.87 $94.46 million $0.84 21.06
Old National Bancorp $678.72 million 4.19 $95.72 million $1.10 17.00

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

Summary

Old National Bancorp beats Northwest Bancshares on 11 of the 16 factors compared between the two stocks.

Northwest Bancshares Company Profile

Northwest Bancshares, Inc. operates as a bank holding company for Northwest Savings Bank that offers various personal and business banking solutions in the United States. The company offers personal and business deposits, such as checking, savings, money market deposit, term certificate, and individual retirement accounts. Its loan portfolio comprise one-to-four family residential real estate, residential mortgage, short term consumer, multi-family residential and commercial real estate, commercial business, and home equity loans; lines of credit; and consumer loans, including automobile, sales finance, unsecured personal, and credit card loans, as well as loans secured by deposit accounts. In addition, the company offers employee benefit, property, and casualty insurance services; and trust, investment management, and brokerage services. As of December 31, 2017, it operated 172 community-banking locations in central and western Pennsylvania, western New York, and eastern Ohio. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Warren, Pennsylvania.

Old National Bancorp Company Profile

Old National Bancorp operates as the holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. The company offers deposit accounts, including noninterest-bearing demand, NOW, savings and money market, and time deposits; and loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, letters of credit, and lease financing. It also provides debit and ATM cards, telephone access, and online banking, as well as other electronic and mobile banking services; and cash management, private banking, brokerage, trust, and investment advisory services. As of December 31, 2016, the company operated 191 banking centers located primarily in Indiana, Kentucky, Michigan, Wisconsin, and Minnesota. Old National Bancorp was founded in 1834 and is headquartered in Evansville, Indiana.

Receive News & Ratings for Northwest Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northwest Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.