Great Southern Bancorp (NASDAQ: GSBC) and Summit Financial Group (NASDAQ:SMMF) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Valuation and Earnings
This table compares Great Southern Bancorp and Summit Financial Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Great Southern Bancorp||$213.68 million||3.40||$45.34 million||$3.60||14.35|
|Summit Financial Group||$75.69 million||4.32||$17.29 million||$1.20||21.93|
This table compares Great Southern Bancorp and Summit Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Southern Bancorp||23.03%||11.46%||1.14%|
|Summit Financial Group||15.35%||11.72%||1.06%|
Volatility and Risk
Great Southern Bancorp has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Summit Financial Group has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Great Southern Bancorp pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Summit Financial Group pays an annual dividend of $0.44 per share and has a dividend yield of 1.7%. Great Southern Bancorp pays out 26.7% of its earnings in the form of a dividend. Summit Financial Group pays out 36.7% 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. Great Southern Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and price targets for Great Southern Bancorp and Summit Financial Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Southern Bancorp||0||2||0||0||2.00|
|Summit Financial Group||0||2||0||0||2.00|
Great Southern Bancorp currently has a consensus price target of $56.00, suggesting a potential upside of 8.42%. Summit Financial Group has a consensus price target of $26.50, suggesting a potential upside of 0.68%. Given Great Southern Bancorp’s higher possible upside, research analysts plainly believe Great Southern Bancorp is more favorable than Summit Financial Group.
Insider & Institutional Ownership
40.9% of Great Southern Bancorp shares are owned by institutional investors. Comparatively, 22.9% of Summit Financial Group shares are owned by institutional investors. 23.8% of Great Southern Bancorp shares are owned by insiders. Comparatively, 22.8% of Summit Financial Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Great Southern Bancorp beats Summit Financial Group on 11 of the 14 factors compared between the two stocks.
Great Southern Bancorp Company Profile
Great Southern Bancorp, Inc. is a bank holding company, a financial holding company and the parent of Great Southern Bank (the Bank). Through the Bank and subsidiaries of the Bank, the Company offers insurance, travel, investment and related services. The Bank makes long-term, fixed-rate residential real estate loans. It also originates commercial real estate and other residential loans, primarily with adjustable rates or shorter-term fixed rates, and commercial business and consumer loans, primarily in indirect automobile lending. The Company’s investment portfolio consists of mortgage-backed securities, and states and political subdivisions. As of December 31, 2016, the Bank offered a range of banking services through its 104 banking centers located in southern and central Missouri; the Kansas City, Missouri area; the St. Louis, Missouri area; eastern Kansas; northwestern Arkansas; eastern Nebraska, the Minneapolis, Minnesota area, and eastern, western and central Iowa.
Summit Financial Group Company Profile
Summit Financial Group, Inc. (Summit) is a financial holding company. The Company provides community banking services primarily in the Eastern Panhandle and South Central regions of West Virginia and the Shenandoah Valley, and Northern region of Virginia. The Company provides these services through its community bank subsidiary, Summit Community Bank (Summit Community or the Bank). The Company operates through two segments: community banking, and insurance & financial services. The community banking segment consists of its full service banks, which offer customers traditional banking products and services through various delivery channels. The insurance & financial services segment includes three insurance agency offices that sell insurance products. The Company also operates Summit Insurance Services, LLC in Moorefield, West Virginia and Leesburg, Virginia, which provides insurance brokerage services to individuals and businesses.
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