Reviewing Southern Missouri Bancorp (NASDAQ:SMBC) and FFW (OTCMKTS:FFWC)

FFW (OTCMKTS:FFWC) and Southern Missouri Bancorp (NASDAQ:SMBC) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Institutional and Insider Ownership

49.5% of Southern Missouri Bancorp shares are owned by institutional investors. 17.0% of FFW shares are owned by insiders. Comparatively, 15.8% of Southern Missouri Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for FFW and Southern Missouri Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FFW	0	0	0	0	0.00
Southern Missouri Bancorp	0	2	2	0	2.50

Southern Missouri Bancorp has a consensus price target of $73.33, indicating a potential downside of 3.56%. Given Southern Missouri Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Southern Missouri Bancorp is more favorable than FFW.

Risk and Volatility

FFW has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares FFW and Southern Missouri Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FFW	18.80%	N/A	N/A
Southern Missouri Bancorp	21.36%	12.05%	1.33%

Dividends

FFW pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. Southern Missouri Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. FFW pays out 21.4% of its earnings in the form of a dividend. Southern Missouri Bancorp pays out 16.7% 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. Southern Missouri Bancorp has increased its dividend for 13 consecutive years.

Valuation & Earnings

This table compares FFW and Southern Missouri Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FFW	$32.63 million	1.72	$5.54 million	$5.79	8.91
Southern Missouri Bancorp	$196.49 million	4.26	$58.58 million	$5.99	12.69

Southern Missouri Bancorp has higher revenue and earnings than FFW. FFW is trading at a lower price-to-earnings ratio than Southern Missouri Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Southern Missouri Bancorp beats FFW on 15 of the 17 factors compared between the two stocks.

About FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.

About Southern Missouri Bancorp

Southern Missouri Bancorp, Inc. operates as the bank holding company for Southern Bank that provides banking and financial services to individuals and corporate customers in the United States. The company offers deposits products, including interest-bearing and noninterest-bearing transaction accounts, saving accounts, certificates of deposit, retirement savings plans, and money market deposit accounts. It also provides loans, such as residential mortgage, commercial real estate, construction, and commercial business loans; and consumer loans comprising home equity, direct and indirect automobile loans, second mortgages, mobile home loans, and loans secured by deposits. In addition, the company offers fiduciary and investment management services; commercial and consumer insurance; online and mobile banking services; and debit or credit cards. The company was founded in 1887 and is headquartered in Poplar Bluff, Missouri.