Critical Analysis: Cambridge Bancorp (NASDAQ:CATC) & Great Southern Bancorp (NASDAQ:GSBC)

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

Analyst Recommendations

This is a breakdown of current recommendations for Cambridge Bancorp and Great Southern Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambridge Bancorp 0 3 1 0 2.25
Great Southern Bancorp 0 2 0 0 2.00

Cambridge Bancorp currently has a consensus price target of $80.08, suggesting a potential upside of 9.99%. Great Southern Bancorp has a consensus price target of $57.50, suggesting a potential upside of 4.56%. Given Cambridge Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Cambridge Bancorp is more favorable than Great Southern Bancorp.

Valuation & Earnings

This table compares Cambridge Bancorp and Great Southern Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cambridge Bancorp $203.00 million 2.82 $52.91 million $4.76 15.29
Great Southern Bancorp $326.91 million 1.98 $67.80 million $5.63 9.77

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

Profitability

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

Net Margins Return on Equity Return on Assets
Cambridge Bancorp 13.82% 8.86% 0.84%
Great Southern Bancorp 20.74% 12.45% 1.18%

Volatility and Risk

Cambridge Bancorp has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Great Southern Bancorp has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

56.7% of Cambridge Bancorp shares are held by institutional investors. Comparatively, 41.0% of Great Southern Bancorp shares are held by institutional investors. 4.5% of Cambridge Bancorp shares are held by insiders. Comparatively, 27.6% of Great Southern Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Cambridge Bancorp pays an annual dividend of $2.68 per share and has a dividend yield of 3.7%. Great Southern Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Cambridge Bancorp pays out 56.3% of its earnings in the form of a dividend. Great Southern Bancorp pays out 28.4% 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. Cambridge Bancorp has raised its dividend for 25 consecutive years. Cambridge Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Great Southern Bancorp beats Cambridge Bancorp on 9 of the 17 factors compared between the two stocks.

About Cambridge Bancorp

(Get Free Report)

Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that engages in the provision of commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking, savings, money market, trust, and individual retirement accounts, as well as time and demand deposits, and certificates of deposit. Its loan products include residential and commercial real estate mortgage loans; home equity loans; commercial and industrial loans; consumer loans, such as secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. The company operates through a network of banking and wealth management offices located in Massachusetts and New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.

About Great Southern Bancorp

(Get Free Report)

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, construction loans, commercial business 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.

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