Great Southern Bancorp (NASDAQ:GSBC – Get Free Report) and Independent Bank (NASDAQ:IBCP – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Risk and Volatility
Great Southern Bancorp has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
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 | 19.85% | 10.62% | 1.21% |
| Independent Bank | 22.32% | 14.12% | 1.29% |
Institutional & Insider Ownership
41.7% of Great Southern Bancorp shares are held by institutional investors. Comparatively, 79.4% of Independent Bank shares are held by institutional investors. 29.7% of Great Southern Bancorp shares are held by company insiders. Comparatively, 5.9% of Independent Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Great Southern Bancorp and Independent Bank”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Great Southern Bancorp | $342.78 million | 2.51 | $70.97 million | $6.02 | 13.11 |
| Independent Bank | $315.38 million | 2.60 | $68.54 million | $3.44 | 10.74 |
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.
Analyst Ratings
This is a summary of current ratings and target prices for Great Southern Bancorp and Independent Bank, as provided 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, indicating a potential downside of 6.25%. Independent Bank has a consensus price target of $39.50, indicating a potential upside of 6.87%. Given Independent Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Independent Bank is more favorable than Great Southern Bancorp.
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 3.0%. 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.
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.
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