Old Second Bancorp, Inc. (OSBC) vs Preferred Bank (PFBC)

Old Second Bancorp, Inc. and Preferred Bank are both Banks Regional companies. Old Second Bancorp, Inc. and Preferred Bank are of similar size ($1.2B and $1.2B). Preferred Bank trades at the lower P/E: 9.3× against 11.3×. Old Second Bancorp, Inc. grew revenue faster over the last twelve months: 21.7% against 0.55%. Preferred Bank has the higher net margin (26.2% vs 24.5%) and the higher return on invested capital (27.0% vs 11.2%). Both pay a dividend; Preferred Bank yields more (3.11% vs 1.19%). Across the 19 metrics below, Old Second Bancorp, Inc. leads on 10 and Preferred Bank on 9.

Valuation

Metric OSBC PFBC Banks Regional median
P/E 11.25 9.33 11.87
P/S 2.69 2.41 2.35
P/B 1.40 1.54 1.23
Price to free cash flow 7.90 8.68 10.45
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.89% 10.72% 8.34%
Free cash flow yield 12.67% 11.52% 9.37%

Profitability

Metric OSBC PFBC Banks Regional median
Gross margin 84.10% 57.93% 69.92%
Operating margin 0.00% 0.00% 0.00%
Net margin 24.50% 26.20% 18.99%
Free cash flow margin 34.12% 0.00% 18.19%
Return on equity 12.78% 0.00% 10.45%
Return on assets 1.62% 1.75% 1.15%
Return on invested capital 11.21% 26.98% 8.54%

Growth

Metric OSBC PFBC Banks Regional median
Revenue growth (TTM) 21.68% 0.55% 6.56%
EPS growth (last fiscal year) (13.37%) 7.99% 18.85%
Revenue growth, 5-year CAGR 23.16% 18.09% 12.65%
Net income growth, 5-year CAGR 23.61% 14.04% 9.81%

Health

Metric OSBC PFBC Banks Regional median
Debt to equity 0.07 0.44 0.14
Current ratio 0.92 1.05 0.92
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric OSBC PFBC Banks Regional median
Dividend yield 1.19% 3.11% 2.51%
Payout ratio 0.14 0.30 0.30

Size

Metric OSBC PFBC Banks Regional median
Market cap 1.24b 1.23b 915.17m

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