First Midwest Bancorp (NASDAQ:FMBI) and Princeton National Bancorp (OTCMKTS:PNBC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
This is a summary of recent ratings for First Midwest Bancorp and Princeton National Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Midwest Bancorp||0||4||2||0||2.33|
|Princeton National Bancorp||0||0||0||0||N/A|
First Midwest Bancorp presently has a consensus target price of $26.70, suggesting a potential upside of 29.80%. Given First Midwest Bancorp’s higher probable upside, equities research analysts clearly believe First Midwest Bancorp is more favorable than Princeton National Bancorp.
First Midwest Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. Princeton National Bancorp does not pay a dividend. First Midwest Bancorp pays out 28.7% of its earnings in the form of a dividend. First Midwest Bancorp has increased its dividend for 6 consecutive years.
This table compares First Midwest Bancorp and Princeton National Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Midwest Bancorp||22.44%||9.33%||1.22%|
|Princeton National Bancorp||N/A||N/A||N/A|
Valuation and Earnings
This table compares First Midwest Bancorp and Princeton National Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Midwest Bancorp||$727.08 million||3.02||$157.87 million||$1.67||12.32|
|Princeton National Bancorp||N/A||N/A||N/A||N/A||N/A|
First Midwest Bancorp has higher revenue and earnings than Princeton National Bancorp.
Institutional & Insider Ownership
81.3% of First Midwest Bancorp shares are held by institutional investors. 1.1% of First Midwest Bancorp shares are held by insiders. Comparatively, 6.6% of Princeton National Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
First Midwest Bancorp has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Princeton National Bancorp has a beta of 7.46, suggesting that its share price is 646% more volatile than the S&P 500.
First Midwest Bancorp beats Princeton National Bancorp on 9 of the 12 factors compared between the two stocks.
First Midwest Bancorp Company Profile
First Midwest Bancorp, Inc. operates as the bank holding company for First Midwest Bank that provides various banking products and services. The company accepts checking, NOW, money market, and savings accounts, as well as various types of short-term and long-term certificates of deposit. Its loan products include working capital loans; accounts receivable financing; inventory and equipment financing; sector-based lending, including healthcare, asset-based lending, structured finance, and syndications; agricultural loans; and mortgages, home equity lines and loans, personal loans, specialty loans, and consumer secured loans, as well as funding for the construction, purchase, refinance, or improvement of commercial real estate properties. In addition, the company offers treasury management products and services comprising automated clearing house collection, lockbox, remote deposit capture, and financial electronic data interchange; wire transfer, account reconciliation, controlled disbursement, direct deposit, and positive pay services; information reporting services; corporate credit cards; and liquidity management, fraud prevention, and merchant services. Further, it provides fiduciary and executor, financial planning, investment advisory, employee benefit plan, and private banking services to corporate and public retirement plans, foundations and endowments, high net worth individuals, and multi-employer trust funds. Additionally, the company offers debit and automated teller machine, and credit cards; Internet and mobile, and telephone banking services; and financial education services. It serves commercial and industrial, commercial real estate, municipal, and consumer customers. The company operates 120 locations and 177 automated teller machines in greater Chicago metropolitan area, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest Bancorp, Inc. was incorporated in 1982 and is headquartered in Chicago, Illinois.
Princeton National Bancorp Company Profile
Princeton National Bancorp, Inc. does not have significant operations. Previously it operated as a holding company for Citizens First National Bank that provided commercial banking and trust services in Illinois. The company was founded in 1865 and is headquartered in Princeton, Illinois.
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