Head-To-Head Review: SR Bancorp (NASDAQ:SRBK) & Southern Missouri Bancorp (NASDAQ:SMBC)

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

Valuation & Earnings

This table compares SR Bancorp and Southern Missouri Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$30.62 million	3.45	-$10.86 million	$0.12	93.58
Southern Missouri Bancorp	$166.92 million	4.53	$50.18 million	$4.35	15.41

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	2.25%	0.50%	0.10%
Southern Missouri Bancorp	17.44%	10.32%	1.07%

Institutional and Insider Ownership

24.7% of SR Bancorp shares are owned by institutional investors. Comparatively, 49.5% of Southern Missouri Bancorp shares are owned by institutional investors. 3.6% of SR Bancorp shares are owned by company insiders. Comparatively, 16.6% of Southern Missouri Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

SR Bancorp has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for SR Bancorp and Southern Missouri Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	0	0	0	0.00
Southern Missouri Bancorp	0	1	2	0	2.67

Southern Missouri Bancorp has a consensus price target of $63.00, suggesting a potential downside of 6.04%. Given Southern Missouri Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Southern Missouri Bancorp is more favorable than SR Bancorp.

Summary

Southern Missouri Bancorp beats SR Bancorp on 12 of the 14 factors compared between the two stocks.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.

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. The company offers deposits products, including interest-bearing and noninterest-bearing transaction accounts, saving accounts, certificates of deposit, retirement savings plans, and money market deposit accounts. It also provides loans, such as residential mortgage, commercial real estate, construction, and commercial business loans; and consumer loans comprising home equity, direct and indirect automobile loans, second mortgages, mobile home loans, and loans secured by deposits. In addition, the company offers fiduciary and investment management services; commercial and consumer insurance; online and mobile banking services; and debit or credit cards. The company was founded in 1887 and is headquartered in Poplar Bluff, Missouri.