Contrasting Merchants Bancorp (NASDAQ:MBIN) & Great Southern Bancorp (NASDAQ:GSBC)

Great Southern Bancorp (NASDAQ:GSBCGet Rating) and Merchants Bancorp (NASDAQ:MBINGet Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Great Southern Bancorp and Merchants Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Southern Bancorp 0 1 0 0 2.00
Merchants Bancorp 0 0 0 1 4.00

Great Southern Bancorp presently has a consensus target price of $63.00, suggesting a potential upside of 9.85%. Merchants Bancorp has a consensus target price of $36.67, suggesting a potential upside of 57.50%. Given Merchants Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Merchants Bancorp is more favorable than Great Southern Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Great Southern Bancorp 31.29% 11.86% 1.33%
Merchants Bancorp 47.17% 28.10% 2.06%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Great Southern Bancorp $236.99 million 3.12 $74.63 million $5.39 10.64
Merchants Bancorp $469.22 million 2.15 $227.10 million $5.00 4.65

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

Dividends

Great Southern Bancorp pays an annual dividend of $1.44 per share and has a dividend yield of 2.5%. Merchants Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Great Southern Bancorp pays out 26.7% of its earnings in the form of a dividend. Merchants Bancorp pays out 5.6% 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. Great Southern Bancorp has increased its dividend for 1 consecutive years and Merchants Bancorp has increased its dividend for 5 consecutive years.

Institutional & Insider Ownership

46.5% of Great Southern Bancorp shares are owned by institutional investors. Comparatively, 14.8% of Merchants Bancorp shares are owned by institutional investors. 25.8% of Great Southern Bancorp shares are owned by insiders. Comparatively, 40.8% of Merchants Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Great Southern Bancorp has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Merchants Bancorp has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Summary

Merchants Bancorp beats Great Southern Bancorp on 12 of the 17 factors compared between the two stocks.

About Great Southern Bancorp (Get Rating)

Great Southern Bancorp, Inc. operates as a bank holding company for Great Southern Bank that offers a range of financial services in the United States. Its deposit products include regular savings accounts, checking accounts, money market accounts, fixed interest rate certificates with varying maturities, certificates of deposit, brokered certificates, and individual retirement accounts. The company's loan portfolio comprises residential and commercial real estate loans, construction loans, commercial business loans, home improvement loans, and unsecured consumer loans, as well as secured consumer loans, including automobile loans, boat loans, home equity loans, loans secured by savings deposits. It also provides insurance and merchant banking services. As of December 31, 2021, the company operated 93 retail banking centers and approximately 200 automated teller machines in Missouri, Iowa, Minnesota, Kansas, Nebraska, and Arkansas; and six commercial and one mortgage loan production offices in Atlanta, Chicago, Dallas, Denver, Omaha, Nebraska, Phoenix and Tulsa, Oklahoma, Springfield, and Missouri. Great Southern Bancorp, Inc. was founded in 1923 and is headquartered in Springfield, Missouri.

About Merchants Bancorp (Get Rating)

Merchants Bancorp operates as the diversified bank holding company in the United States. The company operates through Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. This segment also offers customized loan products for independent living, assisted living, memory care, and skilled nursing projects; and operates as a syndicator of low-income housing tax credit and debt funds. The Mortgage Warehousing segment funds agency eligible residential loans, including origination, purchase, and sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment offers a range of financial products and services to consumers and businesses, such as various types of deposit products, as well as multi-family construction and bridge, commercial real estate, commercial and industrial, agricultural, residential mortgage, and consumer loan products. This segment also provides single-family mortgage lending; construction, bridge, and lot financing; first-lien home equity lines of credit; and small business administration lending products and services. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana.

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