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

Institutional & Insider Ownership

47.5% of Southern Missouri Bancorp shares are held by institutional investors. Comparatively, 44.2% of Anchor shares are held by institutional investors. 17.9% of Southern Missouri Bancorp shares are held by insiders. Comparatively, 5.6% of Anchor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Southern Missouri Bancorp and Anchor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southern Missouri Bancorp 0 0 0 0 N/A
Anchor 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
Southern Missouri Bancorp 22.01% 10.90% 1.10%
Anchor 6.43% 6.19% 0.87%

Earnings & Valuation

This table compares Southern Missouri Bancorp and Anchor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southern Missouri Bancorp $72.57 million 4.29 $15.55 million N/A N/A
Anchor $24.54 million 2.56 $2.35 million N/A N/A

Southern Missouri Bancorp has higher revenue and earnings than Anchor.

Dividends

Southern Missouri Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. Anchor does not pay a dividend.

Volatility and Risk

Southern Missouri Bancorp has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Anchor has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Summary

Southern Missouri Bancorp beats Anchor on 10 of the 11 factors compared between the two stocks.

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. It offers various deposit instruments, including demand deposit accounts, negotiable order of withdrawal accounts, money market deposit accounts, saving accounts, certificates of deposit, and retirement savings plans. The company also provides loans for the acquisition or refinance of one-to four-family residences; loans secured by commercial real estate, including land, shopping centers, retail establishments, nursing homes and other healthcare related facilities, and other businesses; construction loans; and various secured consumer loans comprising home equity, direct and indirect automobile loans, second mortgages, mobile home loans, and loans secured by deposits. In addition, it offers commercial business loans, such as loans to finance accounts receivable, inventory, equipment, and operating lines of credit. As of June 30, 2017, the company operated 38 full-service branch offices, and 3 limited-service branch offices located in Poplar Bluff, Van Buren, Dexter, Kennett, Doniphan, Sikeston, Qulin, Matthews, Springfield, Thayer, West Plains, Alton, Clever, Forsyth, Fremont Hills, Kimberling City, Ozark, Nixa, Rogersville, Cape Girardeau, Jackson, Jonesboro, Paragould, Brookland, Batesville, Searcy, Bald Knob, Arkansas, and Illinois. Southern Missouri Bancorp, Inc. was founded in 1887 and is based in Poplar Bluff, Missouri.

About Anchor

Anchor Bancorp operates as the bank holding company for Anchor Bank that provides various banking products and services in Western Washington. The company accepts deposit products, such as checking, money market deposit, and savings accounts, as well as certificates of deposit. It offers one-to-four family loans, home equity loans and lines of credit, commercial and multi-family real estate loans, commercial business loans, construction and land loans, unsecured consumer loans, and automobile loans; and other cash management services. Its investment portfolio consists of mortgage-backed securities, municipal bonds, and mutual funds. It operates 10 full-service banking offices located in Grays Harbor, Thurston, Lewis, Pierce, and Mason counties, as well as a loan production office located in King County, Washington. Anchor Bancorp was founded in 1907 and is headquartered in Lacey, Washington.

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