Ponce Financial Group (NASDAQ:PDLB – Get Free Report) and Southern Missouri Bancorp (NASDAQ:SMBC – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Institutional & Insider Ownership
64.3% of Ponce Financial Group shares are held by institutional investors. Comparatively, 49.5% of Southern Missouri Bancorp shares are held by institutional investors. 7.2% of Ponce Financial Group shares are held by company insiders. Comparatively, 14.6% of Southern Missouri Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Ponce Financial Group has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
Valuation & Earnings
This table compares Ponce Financial Group 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 | |
| Ponce Financial Group | $194.94 million | 2.63 | $28.70 million | $1.40 | 15.16 |
| Southern Missouri Bancorp | $316.78 million | 2.51 | $71.84 million | $6.78 | 10.66 |
Southern Missouri Bancorp has higher revenue and earnings than Ponce Financial Group. Southern Missouri Bancorp is trading at a lower price-to-earnings ratio than Ponce Financial Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Ponce Financial Group and Southern Missouri Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ponce Financial Group | 0 | 1 | 0 | 1 | 3.00 |
| Southern Missouri Bancorp | 0 | 5 | 1 | 1 | 2.43 |
Ponce Financial Group currently has a consensus target price of $24.00, indicating a potential upside of 13.05%. Southern Missouri Bancorp has a consensus target price of $79.50, indicating a potential upside of 9.96%. Given Ponce Financial Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Ponce Financial Group is more favorable than Southern Missouri Bancorp.
Profitability
This table compares Ponce Financial Group and Southern Missouri Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ponce Financial Group | 16.51% | 10.52% | 1.02% |
| Southern Missouri Bancorp | 23.47% | 13.02% | 1.46% |
Summary
Southern Missouri Bancorp beats Ponce Financial Group on 9 of the 14 factors compared between the two stocks.
About Ponce Financial Group
Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.
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.
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