Critical Analysis: Investar (NASDAQ:ISTR) and Great Southern Bancorp (NASDAQ:GSBC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Investar	17.55%	11.65%	1.14%
Great Southern Bancorp	20.72%	10.83%	1.22%

Dividends

Investar pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Great Southern Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 2.2%. Investar pays out 19.8% of its earnings in the form of a dividend. Great Southern Bancorp pays out 28.6% 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. Investar has raised its dividend for 10 consecutive years.

Insider & Institutional Ownership

50.2% of Investar shares are held by institutional investors. Comparatively, 41.7% of Great Southern Bancorp shares are held by institutional investors. 10.6% of Investar shares are held by insiders. Comparatively, 29.7% of Great Southern Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Investar has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Great Southern Bancorp has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Investar and Great Southern Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Investar	$153.48 million	2.58	$22.90 million	$2.43	11.83
Great Southern Bancorp	$342.78 million	2.45	$70.97 million	$6.02	12.81

Great Southern Bancorp has higher revenue and earnings than Investar. Investar 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.

Analyst Ratings

This is a summary of current ratings for Investar and Great Southern Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Investar	0	2	1	0	2.33
Great Southern Bancorp	0	2	1	0	2.33

Investar currently has a consensus price target of $31.50, indicating a potential upside of 9.62%. Great Southern Bancorp has a consensus price target of $74.00, indicating a potential downside of 4.03%. Given Investar’s higher possible upside, equities analysts plainly believe Investar is more favorable than Great Southern Bancorp.

Summary

Great Southern Bancorp beats Investar on 9 of the 15 factors compared between the two stocks.

About Investar

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals, professionals, and small to medium-sized businesses in south Louisiana, southeast Texas, and Alabama in the United States. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit and credit cards; internet, mobile, and video banking services; and reciprocal deposit products. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate loans, such as second mortgage loans; and consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers treasury management products, including remote deposit capture, lockbox payment processing, virtual vault, positive pay, ACH origination, wire transfer, investment sweep accounts, and business internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machines, electronic statements, interactive teller machines, online account opening, and mobile wallet payment services. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.

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.