Wintrust Financial and Old National Bancorp: A Detailed Comparison

Investors are increasingly interested in comparing financial institutions, specifically mid-cap companies like Wintrust Financial and Old National Bancorp. Both firms offer a range of services, but they differ significantly in terms of dividends, financial performance, and market positioning.

Dividend Analysis and Payout Ratios

When evaluating dividends, Wintrust Financial offers an annual dividend of $2.00 per share, resulting in a dividend yield of 1.5%. In contrast, Old National Bancorp provides a smaller annual dividend of $0.56 per share, translating to a higher yield of 2.7%. Dividend payout ratios also show contrasting strategies; Wintrust pays out 18.4% of its earnings in dividends, while Old National has a payout ratio of 32.7%. Both companies maintain healthy payout ratios, indicating they can sustain these dividends for the foreseeable future. Notably, Wintrust has achieved the milestone of raising its dividend for 12 consecutive years, showcasing its commitment to returning value to shareholders.

Performance Metrics and Analyst Recommendations

Recent analysis from MarketBeat has provided insights into the performance and analyst recommendations for both institutions. In terms of volatility, Wintrust has a beta of 0.91, suggesting a 9% lower volatility compared to the S&P 500. Old National, with a beta of 0.89, is slightly less volatile at 11% compared to the index. This lower volatility may appeal to conservative investors seeking stability.

Institutional ownership is another critical factor to consider. Approximately 93.5% of Wintrust’s shares are held by institutional investors, while Old National has 83.7% institutional ownership. This high level of institutional investment often indicates confidence in a company’s long-term performance, with large funds and money managers backing these stocks.

Profitability is another area where the two companies differ. Wintrust Financial reports higher net margins, return on equity, and return on assets compared to Old National. Furthermore, Wintrust’s revenue and earnings figures surpass those of Old National, positioning it as a more robust competitor in the financial sector. Additionally, Wintrust is trading at a lower price-to-earnings ratio, suggesting it may present a more attractive valuation for potential investors.

In summary, Wintrust Financial outperforms Old National Bancorp across 12 of the 17 key factors analyzed.

Company Profiles

Wintrust Financial Corporation, founded in 1991 and headquartered in Rosemont, Illinois, operates through three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking division provides a range of services, including loans, deposit accounts, and various banking solutions for individuals and businesses. Meanwhile, the Specialty Finance segment focuses on commercial financing and administrative services, while the Wealth Management segment includes trust and investment services.

On the other hand, Old National Bancorp, established in 1834 and located in Evansville, Indiana, functions as a bank holding company offering various financial services. Its offerings include various deposit accounts, loans, and comprehensive banking solutions, along with wealth management services.

As investors weigh their options, the contrasting strengths of Wintrust Financial and Old National Bancorp provide valuable insights for making informed decisions. With the financial landscape continually evolving, understanding these dynamics will be essential for future investments.