Banner (NASDAQ:BANR) versus NASB Financial (OTCMKTS:NASB) Financial Contrast

Banner (NASDAQ:BANR) and NASB Financial (OTCMKTS:NASB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Risk & Volatility

Banner has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, NASB Financial has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Banner and NASB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banner	0	4	3	0	2.43
NASB Financial	0	0	0	0	0.00

Banner presently has a consensus price target of $71.17, suggesting a potential upside of 15.79%. Given Banner’s stronger consensus rating and higher possible upside, research analysts plainly believe Banner is more favorable than NASB Financial.

Insider & Institutional Ownership

87.3% of Banner shares are owned by institutional investors. 1.7% of Banner shares are owned by company insiders. Comparatively, 47.0% of NASB Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Banner and NASB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banner	22.26%	10.57%	1.21%
NASB Financial	15.19%	6.85%	0.97%

Dividends

Banner pays an annual dividend of $2.00 per share and has a dividend yield of 3.3%. NASB Financial pays an annual dividend of $1.40 per share and has a dividend yield of 3.7%. Banner pays out 36.4% of its earnings in the form of a dividend. NASB Financial pays out 35.2% 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. NASB Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Banner and NASB Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banner	$877.77 million	2.39	$168.90 million	$5.49	11.19
NASB Financial	$178.01 million	1.52	$28.72 million	$3.98	9.43

Banner has higher revenue and earnings than NASB Financial. NASB Financial is trading at a lower price-to-earnings ratio than Banner, indicating that it is currently the more affordable of the two stocks.

Summary

Banner beats NASB Financial on 13 of the 16 factors compared between the two stocks.

About Banner

Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.

About NASB Financial

NASB Financial, Inc. operates as a unitary thrift holding company for North American Savings Bank, F.S.B. that provides various banking products and services in the United States. The company offers checking, savings, money market, and certificate of deposit accounts. It also mortgages and refinancing products, including conventional, veterans administration, federal housing administration, jumbo, and IRA residential real-estate loans. In addition, the company provides commercial real estate development and commercial loans, such as multifamily, retail, single-tenant, multi-tenant, office, industrial, and other loans; investment property loans; and construction and development loans. The company was founded in 1927 and is based in Grandview, Missouri.