Great Southern Bancorp (NASDAQ:GSBC) & Independent Bank (NASDAQ:IBCP) Head-To-Head Survey

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Great Southern Bancorp	$342.78 million	2.48	$70.97 million	$6.02	12.97
Independent Bank	$315.38 million	2.51	$68.54 million	$3.44	10.35

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

Dividends

Great Southern Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 2.2%. Independent Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.1%. Great Southern Bancorp pays out 28.6% of its earnings in the form of a dividend. Independent Bank pays out 32.6% 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. Independent Bank has increased its dividend for 11 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

41.7% of Great Southern Bancorp shares are owned by institutional investors. Comparatively, 79.4% of Independent Bank shares are owned by institutional investors. 29.7% of Great Southern Bancorp shares are owned by insiders. Comparatively, 5.9% of Independent Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Great Southern Bancorp	20.72%	10.83%	1.22%
Independent Bank	22.32%	14.12%	1.29%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Great Southern Bancorp and Independent Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Southern Bancorp	0	2	1	0	2.33
Independent Bank	0	2	3	0	2.60

Great Southern Bancorp presently has a consensus price target of $74.00, suggesting a potential downside of 5.19%. Independent Bank has a consensus price target of $39.50, suggesting a potential upside of 10.96%. Given Independent Bank’s stronger consensus rating and higher possible upside, analysts clearly believe Independent Bank is more favorable than Great Southern Bancorp.

Risk and Volatility

Great Southern Bancorp has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Summary

Independent Bank beats Great Southern Bancorp on 11 of the 17 factors compared between the two stocks.

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.

About Independent Bank

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides commercial banking services to individuals and businesses in rural and suburban communities in Michigan. It offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. The company also provides title insurance services and investment services, as well as automatic teller machines, and internet and mobile banking services. In addition, it operates through branches, drive-thru facilities, and loan production offices. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.