Heritage Financial Corporation (HFWA) vs Old Second Bancorp, Inc. (OSBC)

Heritage Financial Corporation and Old Second Bancorp, Inc. are both Banks Regional companies. Heritage Financial Corporation and Old Second Bancorp, Inc. are of similar size ($1.3B and $1.2B). Heritage Financial Corporation trades at the lower P/E: 13.4× against 14.0×. Old Second Bancorp, Inc. grew revenue faster over the last twelve months: 33.1% against 17.2%. Heritage Financial Corporation has the higher net margin (20.4% vs 20.2%) and the lower return on invested capital (5.20% vs 9.36%). Both pay a dividend; Heritage Financial Corporation yields more (5.04% vs 1.60%). Across the 20 metrics below, Old Second Bancorp, Inc. leads on 14 and Heritage Financial Corporation on 6.

Valuation

Metric HFWA OSBC Banks Regional median
P/E 13.41 14.02 12.15
P/S 3.08 2.80 2.37
P/B 1.06 1.42 1.21
Price to free cash flow 14.59 10.10 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.04 2.64 2.27
Earnings yield 7.46% 7.13% 8.11%
Free cash flow yield 6.85% 9.91% 8.98%

Profitability

Metric HFWA OSBC Banks Regional median
Gross margin 77.18% 83.46% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.44% 20.22% 18.66%
Free cash flow margin 21.11% 27.71% 21.18%
Return on equity 7.80% 11.40% 10.64%
Return on assets 1.01% 1.47% 1.13%
Return on invested capital 5.20% 9.36% 8.33%

Growth

Metric HFWA OSBC Banks Regional median
Revenue growth (TTM) 17.17% 33.08% 6.61%
EPS growth (last fiscal year) 58.06% (13.37%) —
Revenue growth, 5-year CAGR 5.96% 23.16% 12.30%
Net income growth, 5-year CAGR 7.72% 23.61% 9.71%

Health

Metric HFWA OSBC Banks Regional median
Debt to equity 0.17 0.08 0.22
Current ratio 0.83 0.91 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HFWA OSBC Banks Regional median
Dividend yield 5.04% 1.60% 3.75%
Payout ratio 0.38 0.10 0.27

Size

Metric HFWA OSBC Banks Regional median
Market cap 1.16b 1.26b 921.07m

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