Head to Head Comparison: Old Second Bancorp (OSBC) versus Middleburg Financial Corp. (MBRG)

Middleburg Financial Corp. (NASDAQ: MBRG) and Old Second Bancorp (NASDAQ:OSBC) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

29.1% of Middleburg Financial Corp. shares are held by institutional investors. Comparatively, 65.7% of Old Second Bancorp shares are held by institutional investors. 5.1% of Middleburg Financial Corp. shares are held by company insiders. Comparatively, 3.6% of Old Second Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Middleburg Financial Corp. and Old Second Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Middleburg Financial Corp. N/A N/A N/A $1.13 34.26
Old Second Bancorp $97.41 million 3.42 N/A N/A N/A

Profitability

This table compares Middleburg Financial Corp. and Old Second Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Middleburg Financial Corp. 8.07% 3.43% 0.34%
Old Second Bancorp 16.82% 10.30% 0.82%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Middleburg Financial Corp. and Old Second Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Middleburg Financial Corp. 0 0 0 0 N/A
Old Second Bancorp 0 1 0 0 2.00

Old Second Bancorp has a consensus price target of $11.50, suggesting a potential upside of 2.22%. Given Old Second Bancorp’s higher probable upside, analysts clearly believe Old Second Bancorp is more favorable than Middleburg Financial Corp..

Volatility and Risk

Middleburg Financial Corp. has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Old Second Bancorp has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Dividends

Middleburg Financial Corp. pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Old Second Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Middleburg Financial Corp. pays out 46.0% of its earnings in the form of a dividend.

Summary

Old Second Bancorp beats Middleburg Financial Corp. on 8 of the 10 factors compared between the two stocks.

Middleburg Financial Corp. Company Profile

Middleburg Financial Corporation is a bank holding company. The Company conducts its primary operations through two subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. The Company has another subsidiary, MFC Capital Trust II. The Company’s segments are Commercial & Retail Banking, which includes loans, investment securities and deposit accounts; Wealth Management, including wealth management activities, and Mortgage Banking, which includes mortgage banking activities. The Company, through its subsidiaries, offers a range of banking, fiduciary and investment management services to both individuals and small businesses. The Company’s business activities include commercial and retail banking services through Middleburg Bank, wealth management services through Middleburg Investment Group, Inc., and mortgage banking services. Other banking services available to its clients include Internet banking, travelers’ checks, safe deposit rentals, notary public and wire services.

Old Second Bancorp Company Profile

Old Second Bancorp, Inc. is a bank holding company. The Company conducts a full service community banking and trust business through its subsidiaries, including Old Second National Bank (the Bank), Old Second Capital Trust I, Old Second Capital Trust II and Old Second Affordable Housing Fund, L.L.C. The Bank’s full service banking businesses include the customary consumer and commercial products and services that banking institutions provide, including demand, negotiable order of withdrawal, money market and individual retirement accounts; commercial, industrial, consumer and real estate lending, including installment loans, agricultural loans, lines of credit and overdraft checking; safe deposit operations, and a range of additional services tailored to the needs of individual customers, such as the acquisition of the United States Treasury notes and bonds, money orders, cashiers’ checks and foreign currency, direct deposit, debit cards, credit cards and other special services.

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