Analyzing Old National Bancorp (NASDAQ:ONB) and Pioneer Bankshares (OTCMKTS:PNBI)

Pioneer Bankshares (OTCMKTS:PNBI) and Old National Bancorp (NASDAQ:ONB) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pioneer Bankshares and Old National Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Bankshares	0	0	0	0	0.00
Old National Bancorp	0	1	6	0	2.86

Old National Bancorp has a consensus price target of $20.43, suggesting a potential downside of 5.64%. Given Old National Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Old National Bancorp is more favorable than Pioneer Bankshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pioneer Bankshares	N/A	N/A	N/A
Old National Bancorp	17.93%	10.10%	1.12%

Institutional and Insider Ownership

83.7% of Old National Bancorp shares are owned by institutional investors. 13.7% of Pioneer Bankshares shares are owned by insiders. Comparatively, 1.1% of Old National Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Pioneer Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 4.0%. Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.6%. Old National Bancorp pays out 33.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Pioneer Bankshares and Old National Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Bankshares	$15.49 million	1.61	$1.90 million	N/A	N/A
Old National Bancorp	$1.86 billion	3.71	$581.99 million	$1.65	13.12

Old National Bancorp has higher revenue and earnings than Pioneer Bankshares.

Volatility and Risk

Pioneer Bankshares has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Summary

Old National Bancorp beats Pioneer Bankshares on 11 of the 14 factors compared between the two stocks.

About Pioneer Bankshares

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services to individual consumers, small to medium size businesses, and professional community in the United States. The company offers various deposit products, which include business and personal checking accounts, savings accounts, and certificates of deposit. Its personal loans comprise personal installment and single-pay, and auto loans; and business loans consists of operating capital, equipment loans, investment properties, lines of credit, business expansion, and property acquisition or construction, as well as home mortgage and home equity loans. In addition, the company provides credit and debit cards, safe deposit boxes, online and mobile banking tools, merchant services, and cash management services. Further, it offers investment products, such as individual retirement accounts, 529 college savings plans, small business investment strategies, fixed, and variable annuities. Additionally, the company provides personalized investment advisory services, as well as securities and insurance products and services. Pioneer Bankshares, Inc. was founded in 1909 and is headquartered in Stanley, Virginia.

About Old National Bancorp

Old National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. It accepts deposit accounts, including noninterest-bearing demand, interest-bearing checking, negotiable order of withdrawal, savings and money market, and time deposits; and offers loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, agricultural loans, letters of credit, and lease financing. The company also provides debit and automated teller machine cards, telephone access, online banking, and other electronic and mobile banking services; cash management, private banking, brokerage, trust, investment advisory, and other traditional banking services; wealth management, investment, and foreign currency services; and treasury management, merchant, and capital markets services, as well as community development lending and equity investment solutions. The company was founded in 1834 and is headquartered in Evansville, Indiana.