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

Earnings and Valuation

This table compares Atlantic Capital Bancshares and Great Southern Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlantic Capital Bancshares $112.46 million 3.66 -$3.72 million $0.53 29.72
Great Southern Bancorp $221.59 million 3.29 $51.56 million $3.68 14.01

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

Volatility and Risk

Atlantic Capital Bancshares has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Great Southern Bancorp has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Dividends

Great Southern Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 2.5%. Atlantic Capital Bancshares does not pay a dividend. Great Southern Bancorp pays out 34.8% of its earnings in the form of a dividend. Great Southern Bancorp has raised its dividend for 4 consecutive years.

Insider and Institutional Ownership

83.8% of Atlantic Capital Bancshares shares are owned by institutional investors. Comparatively, 41.4% of Great Southern Bancorp shares are owned by institutional investors. 3.4% of Atlantic Capital Bancshares shares are owned by insiders. Comparatively, 23.0% of Great Southern Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Atlantic Capital Bancshares and Great Southern Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantic Capital Bancshares 1.60% 6.14% 0.71%
Great Southern Bancorp 23.35% 10.84% 1.15%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Atlantic Capital Bancshares and Great Southern Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantic Capital Bancshares 0 3 1 0 2.25
Great Southern Bancorp 0 2 0 0 2.00

Atlantic Capital Bancshares presently has a consensus target price of $19.00, indicating a potential upside of 20.63%. Great Southern Bancorp has a consensus target price of $57.00, indicating a potential upside of 10.55%. Given Atlantic Capital Bancshares’ stronger consensus rating and higher possible upside, research analysts clearly believe Atlantic Capital Bancshares is more favorable than Great Southern Bancorp.

Summary

Great Southern Bancorp beats Atlantic Capital Bancshares on 10 of the 17 factors compared between the two stocks.

About Atlantic Capital Bancshares

Atlantic Capital Bancshares, Inc. operates as the holding company for Atlantic Capital Bank, N.A. that provides commercial banking products and services in the United States. The company offers NOW, money market, savings, checking, time, Internet and brokered, and demand deposits; working capital and equipment loans, loans supported by owner-occupied real estate, revolving lines of credit, term loans, letters of credit, installment and term loans, and home equity lines of credit; residential mortgage loans; and commercial real estate loans, including secured construction loans, secured mini-permanent loans, and secured or unsecured lines of credit. It also provides trust and wealth management, treasury management, and depository services; electronic payment services to payroll companies and other high transaction volume clients; capital market services; small business administration and franchise program loans; and online and mobile banking services. The company serves corporate and business clients in various industry sectors, such as industrial and manufacturing, financial services, business services, not-for-profit, consumer service, and retail; and public real estate investment trusts, corporate and commercial real estate clients, and other private clients. It operates through 15 branches located primarily in the metropolitan areas of Atlanta, Georgia; and Chattanooga and Knoxville, Tennessee. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

About Great Southern Bancorp

Great Southern Bancorp, Inc. operates as a bank holding company for Great Southern Bank that offers 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 deposits, brokered certificates, and individual retirement accounts. The company's loan portfolio comprises residential and commercial real estate loans, construction loans, and commercial business loans, as well as secured consumer loans, including automobile loans, boat loans, home equity loans, loans secured by savings deposits, home improvement loans, and unsecured consumer loans. As of December 31, 2017, it operated 104 retail banking centers and approximately 200 automated teller machines in Missouri, Iowa, Minnesota, Nebraska, Kansas, and Arkansas. Great Southern Bancorp, Inc. was founded in 1923 and is headquartered in Springfield, Missouri.

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