Head to Head Analysis: OFG Bancorp (NYSE:OFG) versus Great Southern Bancorp (NASDAQ:GSBC)

Great Southern Bancorp (NASDAQ:GSBC) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Volatility and Risk

Great Southern Bancorp has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Insider and Institutional Ownership

41.7% of Great Southern Bancorp shares are owned by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are owned by institutional investors. 29.7% of Great Southern Bancorp shares are owned by company insiders. Comparatively, 1.2% of OFG Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Great Southern Bancorp and OFG Bancorp”s gross 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	2.48	$70.97 million	$6.02	12.96
OFG Bancorp	$902.28 million	2.42	$205.10 million	$5.08	10.16

OFG Bancorp has higher revenue and earnings than Great Southern Bancorp. OFG Bancorp 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 breakdown of current recommendations and price targets for Great Southern Bancorp and OFG Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Southern Bancorp	0	2	1	0	2.33
OFG Bancorp	0	5	2	0	2.29

Great Southern Bancorp presently has a consensus target price of $74.00, indicating a potential downside of 5.14%. OFG Bancorp has a consensus target price of $55.20, indicating a potential upside of 6.98%. Given OFG Bancorp’s higher possible upside, analysts clearly believe OFG Bancorp is more favorable than Great Southern Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Great Southern Bancorp	20.72%	10.83%	1.22%
OFG Bancorp	24.08%	15.92%	1.80%

Dividends

Great Southern Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 2.2%. OFG Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. Great Southern Bancorp pays out 28.6% of its earnings in the form of a dividend. OFG Bancorp pays out 27.6% 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. OFG Bancorp has raised its dividend for 5 consecutive years. OFG Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

OFG Bancorp beats Great Southern Bancorp on 12 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 OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.