Contrasting Southern Missouri Bancorp (NASDAQ:SMBC) & Mid Penn Bancorp (NASDAQ:MPB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mid Penn Bancorp	N/A	N/A	N/A
Southern Missouri Bancorp	N/A	N/A	N/A

Dividends

Mid Penn Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. Southern Missouri Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 1.5%. Mid Penn Bancorp pays out 31.9% of its earnings in the form of a dividend. Southern Missouri Bancorp pays out 15.9% 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. Southern Missouri Bancorp has increased its dividend for 13 consecutive years.

Valuation and Earnings

This table compares Mid Penn Bancorp and Southern Missouri Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$260.62 million	3.34	$72.96 million	$2.88	11.92
Southern Missouri Bancorp	$204.74 million	3.89	$74.67 million	$6.78	10.66

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

Risk & Volatility

Mid Penn Bancorp has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

43.1% of Mid Penn Bancorp shares are held by institutional investors. Comparatively, 49.5% of Southern Missouri Bancorp shares are held by institutional investors. 7.2% of Mid Penn Bancorp shares are held by insiders. Comparatively, 14.6% of Southern Missouri Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Mid Penn Bancorp and Southern Missouri Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	1	4	0	2.80
Southern Missouri Bancorp	0	5	1	1	2.43

Mid Penn Bancorp currently has a consensus target price of $39.67, indicating a potential upside of 15.51%. Southern Missouri Bancorp has a consensus target price of $79.50, indicating a potential upside of 9.96%. Given Mid Penn Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Mid Penn Bancorp is more favorable than Southern Missouri Bancorp.

Summary

Southern Missouri Bancorp beats Mid Penn Bancorp on 9 of the 15 factors compared between the two stocks.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.

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.