Capital One Financial (NYSE: COF – Get a rating) and Old National Bancorp (NASDAQ: ONB – Get a rating) are both finance companies, but which is the better stock? We will compare the two companies based on institutional ownership strength, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Capital One Financial and Old National Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Capital One Financial||$32.03 billion||1.70||$12.39 billion||$26.84||4.94|
|Former National Bank||$852.87 million||2.98||$277.54 million||$1.67||9.17|
Capital One Financial has higher revenues and profits than Old National Bancorp. Capital One Financial trades at a lower price-to-earnings ratio than Old National Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of the current ratings of Capital One Financial and Old National Bancorp, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Capital One Financial||0||7||14||0||2.67|
|Former National Bank||0||1||2||0||2.67|
Capital One Financial currently has a consensus price target of $178.87, indicating a potential upside of 34.90%. Old National Bancorp has a consensus price target of $21.00, indicating a potential upside of 37.17%. Given Old National Bancorp’s likely higher upside, analysts clearly believe Old National Bancorp is more favorable than Capital One Financial.
This table compares the net margins, return on equity and return on assets of Capital One Financial and Old National Bancorp.
|Net margins||Return on equity||return on assets|
|Capital One Financial||38.68%||19.77%||2.90%|
|Former National Bank||32.54%||9.55%||1.20%|
Risk and Volatility
Capital One Financial has a beta of 1.51, meaning its stock price is 51% more volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.8, meaning its stock price is 20% less volatile than the S&P 500.
Institutional and Insider Ownership
88.9% of Capital One Financial shares are held by institutional investors. By comparison, 75.5% of the shares of the former National Bancorp are held by institutional investors. 1.3% of Capital One Financial shares are held by insiders. By comparison, 1.2% of the shares of the former National Bancorp are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.
Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. Capital One Financial pays 8.9% of its profits as a dividend. Old National Bancorp pays 33.5% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Capital One Financial has increased its dividend for 1 consecutive years.
Capital One Financial beats Old National Bancorp on 12 out of 16 factors compared between the two stocks.
About Capital One Financial (Get a rating)
Capital One Financial Corporation operates as the financial services holding company for Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, Canada and the United Kingdom. It operates through three segments: Credit Cards, Consumer Banking and Business Banking. The company accepts checking accounts, money market deposits, negotiable withdrawal orders, savings deposits and term deposits. Its lending products include credit card loans; automobile and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and cash and deposit management services. It serves consumers, small businesses and commercial customers through digital channels, branches, cafes and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and California. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.
About the former national bank (Get a rating)
Old National Bancorp operates as a bank holding company for Old National Bank which provides various financial services to individuals and businesses in the United States. It accepts deposit accounts, including non-interest-bearing current accounts, interest-bearing checks, negotiable withdrawal orders, savings and money market accounts, and term deposits; and offers loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, letters of credit and leasing. The Company also provides debit and ATM cards, telephone access, online banking and other electronic and mobile banking services; cash management, private banking, brokerage, trust, investment advice and other traditional banking services; wealth management, investment and foreign exchange services; and cash management, merchant, health savings and capital markets services, as well as community development lending and equity investment solutions. As of December 31, 2021, it operated a total of 162 banking centers located primarily in the states of Indiana, Kentucky, Michigan, Minnesota and Wisconsin. Old National Bancorp was founded in 1834 and is headquartered in Evansville, Indiana.
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