Analyzing Northfield Bancorp (NASDAQ:NFBK) and Great Southern Bancorp (NASDAQ:GSBC)

Northfield Bancorp (NASDAQ:NFBK) and Great Southern Bancorp (NASDAQ:GSBC) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Dividends

Northfield Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 4.4%. Great Southern Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 2.8%. Northfield Bancorp pays out 60.5% of its earnings in the form of a dividend. Great Southern Bancorp pays out 29.3% 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.

Volatility & Risk

Northfield Bancorp has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Great Southern Bancorp has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

65.5% of Northfield Bancorp shares are owned by institutional investors. Comparatively, 41.7% of Great Southern Bancorp shares are owned by institutional investors. 6.0% of Northfield Bancorp shares are owned by company insiders. Comparatively, 27.9% of Great Southern Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Northfield Bancorp and Great Southern Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northfield Bancorp	$138.83 million	3.56	$29.94 million	$0.86	13.74
Great Southern Bancorp	$355.26 million	1.99	$61.81 million	$5.87	10.63

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northfield Bancorp	0	2	1	0	2.33
Great Southern Bancorp	0	2	1	0	2.33

Northfield Bancorp presently has a consensus target price of $13.00, suggesting a potential upside of 9.98%. Great Southern Bancorp has a consensus target price of $60.50, suggesting a potential downside of 3.06%. Given Northfield Bancorp’s higher probable upside, equities research analysts plainly believe Northfield Bancorp is more favorable than Great Southern Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northfield Bancorp	13.56%	4.64%	0.58%
Great Southern Bancorp	19.18%	11.17%	1.15%

Summary

Great Southern Bancorp beats Northfield Bancorp on 8 of the 14 factors compared between the two stocks.

About Northfield Bancorp

Northfield Bancorp, Inc. (Staten Island, NY) operates as the bank holding company for Northfield Bank that provides various banking products and services primarily to individuals and corporate customers. It accepts various deposits products, including certificates of deposit, passbook, statement, and money market savings accounts; transaction deposit accounts comprising negotiable orders of withdrawal accounts, and interest and non-interest-bearing checking accounts; and brokered deposits. The company also offers various loans comprising multifamily and other commercial real estate loans, construction and land loans, commercial and industrial loans, one-to-four family residential real estate loans, and home equity loans and lines of credit. In addition, it purchases various investment securities, such as mortgage-backed securities and corporate bonds; and deposits funds in other financial institutions, as well as holds mortgage loans, mortgage-backed securities, and other investments. Further, the company provides automated teller machines; telephone, internet, and mobile banking services; and ACH and wire transfers, cash management, positive pay, and remote deposit capture services. It operates full-service banking offices in Staten Island and Brooklyn, New York; and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. Northfield Bancorp, Inc. (Staten Island, NY) was founded in 1887 and is headquartered in Woodbridge, New Jersey.

About Great Southern Bancorp

Great Southern Bancorp, Inc. operates as a bank holding company for Great Southern Bank that provides 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, commercial business loans, construction loans, home improvement loans, and unsecured consumer loans, as well as secured consumer loans, such as automobile loans, boat loans, home equity loans, and loans secured by savings deposits. It also provides insurance and merchant banking services. The company was founded in 1923 and is headquartered in Springfield, Missouri.