Old National Bancorp (NASDAQ:ONB – Get Free Report) and NewtekOne (NASDAQ:NEWT – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
83.7% of Old National Bancorp shares are held by institutional investors. Comparatively, 38.4% of NewtekOne shares are held by institutional investors. 1.1% of Old National Bancorp shares are held by insiders. Comparatively, 6.5% of NewtekOne shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Old National Bancorp and NewtekOne, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Old National Bancorp | 0 | 1 | 7 | 1 | 3.00 |
| NewtekOne | 0 | 3 | 0 | 0 | 2.00 |
Valuation & Earnings
This table compares Old National Bancorp and NewtekOne”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Old National Bancorp | $2.54 billion | 2.91 | $581.99 million | $1.65 | 14.02 |
| NewtekOne | $271.46 million | 1.40 | $47.33 million | $1.79 | 8.04 |
Old National Bancorp has higher revenue and earnings than NewtekOne. NewtekOne is trading at a lower price-to-earnings ratio than Old National Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 5.3%. Old National Bancorp pays out 33.9% of its earnings in the form of a dividend. NewtekOne pays out 42.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares Old National Bancorp and NewtekOne’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Old National Bancorp | 17.93% | 10.10% | 1.12% |
| NewtekOne | 14.92% | 18.73% | 2.95% |
Risk and Volatility
Old National Bancorp has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.
Summary
Old National Bancorp beats NewtekOne on 11 of the 17 factors compared between the two stocks.
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.
About NewtekOne
NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.
Receive News & Ratings for Old National Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Old National Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
