Analyzing Broadway Financial (NASDAQ:BYFC) and Southern Missouri Bancorp (NASDAQ:SMBC)

Broadway Financial (NASDAQ:BYFC) and Southern Missouri Bancorp (NASDAQ:SMBC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	-31.80%	3.01%	0.27%
Southern Missouri Bancorp	21.36%	12.05%	1.33%

Institutional and Insider Ownership

12.1% of Broadway Financial shares are owned by institutional investors. Comparatively, 49.5% of Southern Missouri Bancorp shares are owned by institutional investors. 4.1% of Broadway Financial shares are owned by company insiders. Comparatively, 15.8% of Southern Missouri Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Broadway Financial has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Valuation and Earnings

This table compares Broadway Financial and Southern Missouri Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$63.03 million	1.48	-$24.80 million	($2.75)	-3.65
Southern Missouri Bancorp	$305.35 million	2.61	$58.58 million	$5.99	12.08

Southern Missouri Bancorp has higher revenue and earnings than Broadway Financial. Broadway Financial 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.

Analyst Ratings

This is a summary of current recommendations for Broadway Financial and Southern Missouri Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	1	0	0	0	1.00
Southern Missouri Bancorp	0	2	2	0	2.50

Southern Missouri Bancorp has a consensus price target of $70.67, indicating a potential downside of 2.31%. Given Southern Missouri Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Southern Missouri Bancorp is more favorable than Broadway Financial.

Summary

Southern Missouri Bancorp beats Broadway Financial on 14 of the 14 factors compared between the two stocks.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

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.