Head-To-Head Comparison: OceanFirst Financial (NASDAQ:OCFC) versus Landmark Bancorp (NASDAQ:LARK)

Landmark Bancorp (NASDAQ:LARK) and OceanFirst Financial (NASDAQ:OCFC) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Earnings & Valuation

This table compares Landmark Bancorp and OceanFirst Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Landmark Bancorp	$65.41 million	2.30	$13.00 million	$2.82	9.23
OceanFirst Financial	$692.36 million	1.42	$100.07 million	$1.41	12.15

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

Dividends

Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 3.2%. OceanFirst Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.7%. Landmark Bancorp pays out 29.8% of its earnings in the form of a dividend. OceanFirst Financial pays out 56.7% 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. Landmark Bancorp has raised its dividend for 6 consecutive years.

Profitability

This table compares Landmark Bancorp and OceanFirst Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Landmark Bancorp	17.55%	12.09%	1.08%
OceanFirst Financial	12.89%	5.22%	0.66%

Insider & Institutional Ownership

25.7% of Landmark Bancorp shares are owned by institutional investors. Comparatively, 71.0% of OceanFirst Financial shares are owned by institutional investors. 12.8% of Landmark Bancorp shares are owned by insiders. Comparatively, 5.0% of OceanFirst Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Landmark Bancorp and OceanFirst Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Landmark Bancorp	0	0	0	0	0.00
OceanFirst Financial	0	4	1	1	2.50

OceanFirst Financial has a consensus price target of $20.6667, indicating a potential upside of 20.65%. Given OceanFirst Financial’s stronger consensus rating and higher probable upside, analysts clearly believe OceanFirst Financial is more favorable than Landmark Bancorp.

Risk and Volatility

Landmark Bancorp has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, OceanFirst Financial has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Summary

OceanFirst Financial beats Landmark Bancorp on 10 of the 18 factors compared between the two stocks.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.

About OceanFirst Financial

OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits, that includes brokered deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, trust and asset management services; and bank owned life insurance products. The company was founded in 1902 and is based in Red Bank, New Jersey.