Analyzing Great Southern Bancorp (NASDAQ:GSBC) and Melrose Bancorp (NASDAQ:MELR)

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

Dividends

Great Southern Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 3.8%. Melrose Bancorp pays an annual dividend of $0.34 per share and has a dividend yield of 1.4%. Great Southern Bancorp pays out 26.5% of its earnings in the form of a dividend. Great Southern Bancorp has raised its dividend for 6 consecutive years. Great Southern Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Great Southern Bancorp $265.95 million 1.91 $73.61 million $5.14 7.02
Melrose Bancorp $11.56 million 5.02 $1.77 million N/A N/A

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

Volatility & Risk

Great Southern Bancorp has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Melrose Bancorp has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Insider & Institutional Ownership

46.3% of Great Southern Bancorp shares are owned by institutional investors. Comparatively, 16.5% of Melrose Bancorp shares are owned by institutional investors. 23.1% of Great Southern Bancorp shares are owned by insiders. Comparatively, 17.3% of Melrose Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Great Southern Bancorp and Melrose Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Southern Bancorp 0 0 0 0 N/A
Melrose Bancorp 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
Great Southern Bancorp 25.04% 10.86% 1.31%
Melrose Bancorp 13.44% 3.63% 0.50%

Summary

Great Southern Bancorp beats Melrose Bancorp on 10 of the 13 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 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 deposit, brokered certificates, and individual retirement accounts. The company's loan portfolio comprises residential and commercial real estate loans, construction loans, commercial business loans, home improvement loans, and unsecured consumer loans, as well as secured consumer loans, including automobile loans, boat loans, home equity loans, loans secured by savings deposits. It also provides insurance and related services. As of December 31, 2018, the company operated 99 retail banking centers and approximately 200 automated teller machines in Missouri, Iowa, Minnesota, Kansas, Nebraska, and Arkansas; and 6 commercial and 1 mortgage loan production offices Atlanta, Chicago, Dallas, Omaha, Nebraska, as well as in Tulsa, Okla. Great Southern Bancorp, Inc. was founded in 1923 and is headquartered in Springfield, Missouri.

About Melrose Bancorp

Melrose Bancorp, Inc. operates as the bank holding company for Melrose Cooperative Bank that provides various banking products and services. The company accepts various deposits, such as noninterest-bearing demand accounts, money market accounts, savings accounts, NOW accounts, and certificates of deposit. Its loan products include one- to four-family residential real estate loans, home equity loans and lines of credit, commercial real estate loans, construction loans, and consumer loans. The company also provides online and mobile banking services; and buys, sells, and holds investment securities. It serves individuals, families, and businesses through a full-service banking office in Melrose, Massachusetts. Melrose Bancorp, Inc. was founded in 1890 and is based in Melrose, Massachusetts.

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