Old National Bancorp (NASDAQ:ONB) vs. NewtekOne (NASDAQ:NEWT) Head-To-Head Analysis

NewtekOne (NASDAQ:NEWT) and Old National Bancorp (NASDAQ:ONB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares NewtekOne and Old National Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$271.46 million	1.43	$47.33 million	$1.79	8.25
Old National Bancorp	$2.54 billion	2.88	$581.99 million	$1.65	13.90

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.

Insider & Institutional Ownership

38.4% of NewtekOne shares are owned by institutional investors. Comparatively, 83.7% of Old National Bancorp shares are owned by institutional investors. 6.5% of NewtekOne shares are owned by insiders. Comparatively, 1.1% of Old National Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NewtekOne	14.92%	18.73%	2.95%
Old National Bancorp	17.93%	10.10%	1.12%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	0	3	0	0	2.00
Old National Bancorp	0	1	6	0	2.86

NewtekOne presently has a consensus target price of $14.33, indicating a potential downside of 2.89%. Old National Bancorp has a consensus target price of $20.43, indicating a potential downside of 10.95%. Given NewtekOne’s higher possible upside, equities research analysts plainly believe NewtekOne is more favorable than Old National Bancorp.

Dividends

NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 5.1%. Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. NewtekOne pays out 42.5% of its earnings in the form of a dividend. Old National Bancorp pays out 33.9% 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.

Risk and Volatility

NewtekOne has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Summary

Old National Bancorp beats NewtekOne on 9 of the 16 factors compared between the two stocks.

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.

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.