Hancock Whitney (NASDAQ:HWC) versus Great Southern Bancorp (NASDAQ:GSBC) Critical Analysis

Hancock Whitney (NASDAQ:HWCGet Rating) and Great Southern Bancorp (NASDAQ:GSBCGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility and Risk

Hancock Whitney has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Great Southern Bancorp has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Hancock Whitney 36.08% 14.18% 1.42%
Great Southern Bancorp 31.29% 11.86% 1.33%

Dividends

Hancock Whitney pays an annual dividend of $1.08 per share and has a dividend yield of 2.1%. Great Southern Bancorp pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. Hancock Whitney pays out 20.0% of its earnings in the form of a dividend. Great Southern Bancorp pays out 26.7% 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. Great Southern Bancorp has raised its dividend for 1 consecutive years. Great Southern Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Hancock Whitney and Great Southern Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hancock Whitney 0 1 2 1 3.00
Great Southern Bancorp 0 1 0 0 2.00

Hancock Whitney currently has a consensus price target of $60.75, indicating a potential upside of 20.92%. Great Southern Bancorp has a consensus price target of $63.00, indicating a potential upside of 5.72%. Given Hancock Whitney’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hancock Whitney is more favorable than Great Southern Bancorp.

Institutional & Insider Ownership

78.4% of Hancock Whitney shares are owned by institutional investors. Comparatively, 46.5% of Great Southern Bancorp shares are owned by institutional investors. 1.0% of Hancock Whitney shares are owned by company insiders. Comparatively, 25.8% of Great Southern Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Hancock Whitney and Great Southern Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hancock Whitney $1.35 billion 3.24 $463.21 million $5.41 9.32
Great Southern Bancorp $236.99 million 3.24 $74.63 million $5.39 11.06

Hancock Whitney has higher revenue and earnings than Great Southern Bancorp. Hancock Whitney 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.

Summary

Hancock Whitney beats Great Southern Bancorp on 13 of the 18 factors compared between the two stocks.

About Hancock Whitney (Get Rating)

Hancock Whitney Corporation operates as the bank holding company for Hancock Whitney Bank that provides a range of banking products and services to commercial, small business, and retail customers. It accepts various deposit products, such as noninterest-bearing demand deposits, interest-bearing transaction accounts, savings accounts, money market deposit accounts, and time deposit accounts. The company's loan products include commercial and industrial loans; commercial real estate loans; construction and land development loans; residential mortgages, including fixed and adjustable-rate loans; consumer loans comprising second lien mortgage home loans, home equity lines of credit, and nonresidential consumer purpose loans; revolving credit facilities; and letters of credit and financial guarantees. It also offers investment brokerage and treasury management services, and annuity and life insurance products; and trust and investment management services to retirement plans, corporations, and individuals, as well as holds foreclosed assets. The company operates 177 full-service banking and financial services offices, and 240 automated teller machines, primarily in the Gulf south corridor, including southern and central Mississippi; southern and central Alabama; southern, central, and northwest Louisiana; the northern, central, and panhandle regions of Florida; and certain areas of east Texas, including Houston, Beaumont, Dallas, and San Antonio. It also operates a loan production office in Nashville, Tennessee; and a trust and asset management office in Marshall, Texas. The company was formerly known as Hancock Holding Company and changed its name to Hancock Whitney Corporation in May 2018. Hancock Whitney Corporation was founded in 1883 and is headquartered in Gulfport, Mississippi.

About Great Southern Bancorp (Get Rating)

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 merchant banking services. As of December 31, 2021, the company operated 93 retail banking centers and approximately 200 automated teller machines in Missouri, Iowa, Minnesota, Kansas, Nebraska, and Arkansas; and six commercial and one mortgage loan production offices in Atlanta, Chicago, Dallas, Denver, Omaha, Nebraska, Phoenix and Tulsa, Oklahoma, Springfield, and Missouri. Great Southern Bancorp, Inc. was founded in 1923 and is headquartered in Springfield, Missouri.

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