Analyzing Pathfinder Bancorp (NASDAQ:PBHC) and Southern Missouri Bancorp (NASDAQ:SMBC)

Pathfinder Bancorp (NASDAQ:PBHC) and Southern Missouri Bancorp (NASDAQ:SMBC) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Valuation & Earnings

This table compares Pathfinder Bancorp and Southern Missouri Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Bancorp	$87.92 million	0.77	$3.38 million	$1.20	11.76
Southern Missouri Bancorp	$187.76 million	3.53	$58.58 million	$5.46	10.83

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathfinder Bancorp	9.09%	6.37%	0.53%
Southern Missouri Bancorp	19.86%	11.57%	1.25%

Risk & Volatility

Pathfinder Bancorp has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Insider and Institutional Ownership

26.7% of Pathfinder Bancorp shares are held by institutional investors. Comparatively, 49.5% of Southern Missouri Bancorp shares are held by institutional investors. 15.4% of Pathfinder Bancorp shares are held by insiders. Comparatively, 15.8% of Southern Missouri Bancorp shares are held 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.

Dividends

Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. Southern Missouri Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Pathfinder Bancorp pays out 33.3% of its earnings in the form of a dividend. Southern Missouri Bancorp pays out 18.3% 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. Pathfinder Bancorp has raised its dividend for 1 consecutive years and Southern Missouri Bancorp has raised its dividend for 13 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Pathfinder Bancorp and Southern Missouri Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathfinder Bancorp	0	1	0	0	2.00
Southern Missouri Bancorp	0	3	1	0	2.25

Southern Missouri Bancorp has a consensus target price of $62.83, suggesting a potential upside of 6.28%. Given Southern Missouri Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Southern Missouri Bancorp is more favorable than Pathfinder Bancorp.

Summary

Southern Missouri Bancorp beats Pathfinder Bancorp on 15 of the 17 factors compared between the two stocks.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.

About Southern Missouri Bancorp

Southern Missouri Bancorp, Inc. operates as the bank holding company for Southern Bank that provides banking and financial services to individuals and corporate customers in the United States. The company offers deposits products, including interest-bearing and noninterest-bearing transaction accounts, saving accounts, certificates of deposit, retirement savings plans, and money market deposit accounts. It also provides loans, such as residential mortgage, commercial real estate, construction, and commercial business loans; and consumer loans comprising home equity, direct and indirect automobile loans, second mortgages, mobile home loans, and loans secured by deposits. In addition, the company offers fiduciary and investment management services; commercial and consumer insurance; online and mobile banking services; and debit or credit cards. The company was founded in 1887 and is headquartered in Poplar Bluff, Missouri.