PCSB Financial (NASDAQ:PCSB) and Southern Missouri Bancorp (NASDAQ:SMBC) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
53.9% of PCSB Financial shares are held by institutional investors. Comparatively, 49.3% of Southern Missouri Bancorp shares are held by institutional investors. 7.1% of PCSB Financial shares are held by insiders. Comparatively, 15.1% of Southern Missouri Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
PCSB Financial pays an annual dividend of $0.16 per share and has a dividend yield of 0.9%. Southern Missouri Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 1.6%. PCSB Financial pays out 28.6% of its earnings in the form of a dividend. Southern Missouri Bancorp pays out 21.3% 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. PCSB Financial has increased its dividend for 1 consecutive years and Southern Missouri Bancorp has increased its dividend for 1 consecutive years. Southern Missouri Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares PCSB Financial and Southern Missouri Bancorp's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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PCSB Financial | $64.98 million | 4.21 | $9.36 million | $0.56 | 30.48 |
Southern Missouri Bancorp | $124.41 million | 2.86 | $27.55 million | $3.00 | 13.19 |
Southern Missouri Bancorp has higher revenue and earnings than PCSB Financial. Southern Missouri Bancorp is trading at a lower price-to-earnings ratio than PCSB Financial, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
PCSB Financial has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for PCSB Financial and Southern Missouri Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
PCSB Financial | 0 | 0 | 2 | 0 | 3.00 |
Southern Missouri Bancorp | 0 | 0 | 1 | 0 | 3.00 |
PCSB Financial presently has a consensus price target of $14.50, suggesting a potential downside of 15.06%. Southern Missouri Bancorp has a consensus price target of $29.00, suggesting a potential downside of 26.69%. Given PCSB Financial's higher probable upside, equities analysts clearly believe PCSB Financial is more favorable than Southern Missouri Bancorp.
Profitability
This table compares PCSB Financial and Southern Missouri Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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PCSB Financial | 14.62% | 3.28% | 0.52% |
Southern Missouri Bancorp | 23.68% | 11.67% | 1.22% |
Summary
Southern Missouri Bancorp beats PCSB Financial on 10 of the 15 factors compared between the two stocks.