Old Second Bancorp (NASDAQ:OSBC) versus Chester Bancorp (OTCMKTS:CNBA) Financial Review

Chester Bancorp (OTCMKTS:CNBA) and Old Second Bancorp (NASDAQ:OSBC) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation and Earnings

This table compares Chester Bancorp and Old Second Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chester Bancorp	N/A	N/A	N/A	N/A	N/A
Old Second Bancorp	$401.54 million	2.68	$80.31 million	$1.68	12.38

Old Second Bancorp has higher revenue and earnings than Chester Bancorp.

Insider & Institutional Ownership

67.8% of Old Second Bancorp shares are owned by institutional investors. 38.8% of Chester Bancorp shares are owned by company insiders. Comparatively, 3.6% of Old Second Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chester Bancorp	N/A	N/A	N/A
Old Second Bancorp	20.07%	12.92%	1.64%

Dividends

Chester Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 19.2%. Old Second Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Old Second Bancorp pays out 16.7% of its earnings in the form of a dividend. Old Second Bancorp has increased its dividend for 1 consecutive years.

Volatility & Risk

Chester Bancorp has a beta of -0.51, meaning that its stock price is 151% less volatile than the S&P 500. Comparatively, Old Second Bancorp has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Chester Bancorp and Old Second Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chester Bancorp	0	0	0	0	0.00
Old Second Bancorp	0	1	4	0	2.80

Old Second Bancorp has a consensus target price of $23.50, indicating a potential upside of 13.04%. Given Old Second Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Old Second Bancorp is more favorable than Chester Bancorp.

Summary

Old Second Bancorp beats Chester Bancorp on 10 of the 13 factors compared between the two stocks.

About Chester Bancorp

Chester Bancorp, Inc. operates as the holding company for Chester National Bank that provides various banking products and services to individuals and businesses in Chester, Illinois. It offers checking accounts, such as regular checking, student checking, golden checking, and club checking accounts; savings accounts, including statement savings, Christmas club, and money market accounts; and certificate of deposits and individual retirement accounts. The company also provides loans comprising mortgage, construction, lot, home equity, consumer, and business loans; and reorder check services. It operates two full service offices in Sparta, Illinois; and Perryville, Missouri. Chester Bancorp, Inc. was founded in 1996 and is based in Chester, Illinois.

About Old Second Bancorp

Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides community banking services. It offers demand, NOW, money market, savings, time deposit, individual retirement, and checking accounts, as well as certificates of deposit accounts. The company also provides commercial loans; lease financing receivables; commercial real estate loans; construction loans; residential real estate loans, such as residential first mortgage and second mortgage loans; home equity line of credit; consumer loans, including motor vehicle, home improvement, and signature loans; installment and agricultural loans; residential mortgages; and overdraft checking. In addition, it offers safe deposit services; trust and wealth management services; and money orders, cashier’s checks, foreign currency, direct deposits, discount brokerage, debit and credit cards, and other services, as well as acquires the U.S. treasury notes and bonds. Further, the company provides online and mobile banking; corporate cash management products, including remote and mobile deposits capture, investment sweep accounts, zero balance accounts, automated tax payments, automatic teller machines access, telephone banking, lockbox accounts, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, foreign and domestic wire transfers, and vault services for currency and coin; and investment, agency, and custodial services for individual, corporate, and not-for-profit clients. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.