Head to Head Comparison: Great Southern Bancorp (NASDAQ:GSBC) versus Enterprise Financial Services (EFSC)

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

Profitability

This table compares Great Southern Bancorp and Enterprise Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Southern Bancorp 23.03% 11.46% 1.14%
Enterprise Financial Services 24.73% 11.15% 1.16%

Institutional and Insider Ownership

40.9% of Great Southern Bancorp shares are held by institutional investors. Comparatively, 74.5% of Enterprise Financial Services shares are held by institutional investors. 23.8% of Great Southern Bancorp shares are held by company insiders. Comparatively, 5.6% of Enterprise Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Great Southern Bancorp has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Enterprise Financial Services has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Great Southern Bancorp and Enterprise Financial Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Southern Bancorp 0 2 0 0 2.00
Enterprise Financial Services 0 1 1 0 2.50

Great Southern Bancorp presently has a consensus target price of $52.00, suggesting a potential downside of 2.16%. Enterprise Financial Services has a consensus target price of $47.50, suggesting a potential upside of 7.22%. Given Enterprise Financial Services’ stronger consensus rating and higher probable upside, analysts plainly believe Enterprise Financial Services is more favorable than Great Southern Bancorp.

Valuation & Earnings

This table compares Great Southern Bancorp and Enterprise Financial Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Great Southern Bancorp $213.68 million 3.50 $45.34 million $3.60 14.76
Enterprise Financial Services $178.28 million 5.73 $48.83 million $2.42 18.31

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

Dividends

Great Southern Bancorp pays an annual dividend of $0.96 per share and has a dividend yield of 1.8%. Enterprise Financial Services pays an annual dividend of $0.44 per share and has a dividend yield of 1.0%. Great Southern Bancorp pays out 26.7% of its earnings in the form of a dividend. Enterprise Financial Services pays out 18.2% 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.

Summary

Enterprise Financial Services beats Great Southern Bancorp on 10 of the 16 factors compared between the two stocks.

About Great Southern Bancorp

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.

About Enterprise Financial Services

Enterprise Financial Services Corp is a financial holding company for a full service banking subsidiary, Enterprise Bank & Trust (the Bank). The Bank offers banking and wealth management services to individuals and business customers primarily located in the St. Louis, Kansas City and Phoenix metropolitan markets. The Company offers a range of business and personal banking services, and wealth management services. Its tax credit brokerage activities consist of the acquisition of Federal and State tax credits and the sale of these tax credits to clients. Enterprise Trust, a division of the Bank (Enterprise Trust or Trust), provides financial planning, estate planning, investment management, and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. It also offers a range of Treasury Management products and services that benefit businesses ranging from large national clients to smallest local merchants.

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