Great Southern Bancorp (NASDAQ: GSBC) and Bridge Capital (NASDAQ:BBNK) are both small-cap financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Dividends

Great Southern Bancorp pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Bridge Capital does not pay a dividend. Great Southern Bancorp pays out 26.4% of its earnings in the form of a dividend.

Risk & Volatility

Great Southern Bancorp has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Bridge Capital has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Earnings and Valuation

This table compares Great Southern Bancorp and Bridge Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Great Southern Bancorp $221.59 million 3.14 $51.56 million $3.64 13.59
Bridge Capital N/A N/A N/A $1.14 26.14

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

Analyst Recommendations

This is a summary of recent recommendations for Great Southern Bancorp and Bridge Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Southern Bancorp 0 2 0 0 2.00
Bridge Capital 0 0 0 0 N/A

Great Southern Bancorp currently has a consensus target price of $56.00, suggesting a potential upside of 13.25%. Given Great Southern Bancorp’s higher probable upside, equities research analysts clearly believe Great Southern Bancorp is more favorable than Bridge Capital.

Profitability

This table compares Great Southern Bancorp and Bridge Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Southern Bancorp 23.27% 11.51% 1.16%
Bridge Capital 16.16% 8.27% 0.85%

Insider & Institutional Ownership

40.8% of Great Southern Bancorp shares are owned by institutional investors. 23.8% of Great Southern Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Great Southern Bancorp beats Bridge Capital on 10 of the 12 factors compared between the two stocks.

About Great Southern Bancorp

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.

About Bridge Capital

Bridge Capital Holdings is the bank holding company for Bridge Bank, National Association (the Bank). The Bank’s lending solutions include working capital lines of credit, structured finance (asset-based lending and factoring), 7(a) and 504 Small Business Administration (SBA) loans, commercial real estate loans, sustainable energy project financing, growth capital loans, equipment financing, letters of credit and commercial credit cards. The Bank’s depository and corporate banking services include cash and treasury management solutions, interest-bearing term deposit accounts, checking accounts, Automated Clearing House (ACH) payment and wire solutions, fraud protection, remote deposit capture, courier services and online banking. The Bank’s international banking services include foreign exchange (FX payments and hedging), letters of credit, and import and export financing. The Bank provides banking services to businesses located across the San Francisco Bay Area.

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