Bridge Capital (NASDAQ: BBNK) and Great Southern Bancorp (NASDAQ:GSBC) are both small-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Insider and 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
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.
This table compares Bridge Capital and Great Southern Bancorp’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%|
Valuation & Earnings
This table compares Bridge Capital and Great Southern Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Great Southern Bancorp||$221.59 million||3.27||$51.56 million||$3.63||14.19|
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.
Volatility & Risk
Bridge Capital has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Great Southern Bancorp has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Bridge Capital and Great Southern Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Southern Bancorp||0||2||0||0||2.00|
Great Southern Bancorp has a consensus price target of $56.00, indicating a potential upside of 8.74%. Given Great Southern Bancorp’s higher probable upside, analysts plainly believe Great Southern Bancorp is more favorable than Bridge Capital.
Great Southern Bancorp beats Bridge Capital on 10 of the 12 factors compared between the two stocks.
Bridge Capital Company Profile
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.
Great Southern Bancorp Company Profile
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.
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