Pathward Financial (NASDAQ:CASH) and Southern Missouri Bancorp (NASDAQ:SMBC) Head-To-Head Comparison

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

Volatility & Risk

Pathward Financial has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Insider and Institutional Ownership

92.7% of Pathward Financial shares are held by institutional investors. Comparatively, 49.5% of Southern Missouri Bancorp shares are held by institutional investors. 1.4% of Pathward Financial shares are held by company insiders. Comparatively, 15.8% of Southern Missouri Bancorp shares are held 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.

Dividends

Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.2%. Southern Missouri Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 1.5%. Pathward Financial pays out 2.5% of its earnings in the form of a dividend. Southern Missouri Bancorp pays out 16.8% 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. Southern Missouri Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Pathward Financial and Southern Missouri Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathward Financial	$851.49 million	2.03	$185.87 million	$7.98	10.42
Southern Missouri Bancorp	$316.78 million	2.58	$71.84 million	$6.43	11.53

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Pathward Financial and Southern Missouri Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathward Financial	0	0	3	0	3.00
Southern Missouri Bancorp	0	4	1	0	2.20

Pathward Financial presently has a consensus target price of $101.00, suggesting a potential upside of 21.41%. Southern Missouri Bancorp has a consensus target price of $83.67, suggesting a potential upside of 12.80%. Given Pathward Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Pathward Financial is more favorable than Southern Missouri Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathward Financial	21.03%	20.61%	2.41%
Southern Missouri Bancorp	22.63%	12.72%	1.42%

Summary

Pathward Financial beats Southern Missouri Bancorp on 10 of the 17 factors compared between the two stocks.

About Pathward Financial

Pathward Financial, Inc. operates as the bank holding company for Pathward, National Association that provides various banking products and services in the United States. The company operates through three segments: Consumer, Commercial, and Corporate Services/Other. It offers demand deposit accounts, savings accounts, and money market savings accounts. The company also provides commercial finance product comprising term lending, asset-based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; consumer credit products; other consumer financing services; tax services, which includes short-term refund advance loans and short-term electronic return originator advance loans; and warehouse financing services. In addition, it issues prepaid cards; and offers payment solutions, such as acceptance, processing, and settlement of credit card and debit card payments. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is based in Sioux Falls, South Dakota.

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.