LOB vs SMBC

For growth investors, Live Oak Bancshares, Inc.

(LOB) is the stronger pick with 12. 0% revenue growth year-over-year, versus 11. 7% for Southern Missouri Bancorp, Inc. (SMBC). Southern Missouri Bancorp, Inc. (SMBC) offers the better valuation at 13. 4x trailing P/E (11. 1x forward), making it the more compelling value choice. Analysts rate Live Oak Bancshares, Inc. (LOB) a "Buy" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Southern Missouri Bancorp, Inc.

(SMBC) is the cheapest at 13. 4x versus Live Oak Bancshares, Inc. at 16. 9x. On forward P/E, Southern Missouri Bancorp, Inc. is actually cheaper at 11. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Southern Missouri Bancorp, Inc. wins at 0. 96x versus Live Oak Bancshares, Inc. 's 1. 33x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Southern Missouri Bancorp, Inc.

(SMBC) delivered a total return of +69. 7%, compared to -43. 1% for Live Oak Bancshares, Inc. (LOB). Over 10 years, the gap is even starker: SMBC returned +209. 1% versus LOB's +142. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Southern Missouri Bancorp, Inc.

(SMBC) is the lower-risk stock at 0. 86β versus Live Oak Bancshares, Inc. 's 1. 44β — meaning LOB is approximately 67% more volatile than SMBC relative to the S&P 500. On balance sheet safety, Live Oak Bancshares, Inc. (LOB) carries a lower debt/equity ratio of 8% versus 26% for Southern Missouri Bancorp, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Live Oak Bancshares, Inc.

(LOB) is pulling ahead at 12. 0% versus 11. 7% for Southern Missouri Bancorp, Inc. (SMBC). On earnings-per-share growth, the picture is similar: Live Oak Bancshares, Inc. grew EPS 31. 4% year-over-year, compared to 17. 2% for Southern Missouri Bancorp, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Southern Missouri Bancorp, Inc.

(SMBC) is the more profitable company, earning 19. 1% net margin versus 10. 0% for Live Oak Bancshares, Inc. — meaning it keeps 19. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SMBC leads at 24. 2% versus 15. 5% for LOB. At the gross margin level — before operating expenses — SMBC leads at 57. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Southern Missouri Bancorp, Inc. (SMBC) is the more undervalued stock at a PEG of 0. 96x versus Live Oak Bancshares, Inc. 's 1. 33x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Southern Missouri Bancorp, Inc. (SMBC) trades at 11. 1x forward P/E versus 12. 3x for Live Oak Bancshares, Inc. — 1. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LOB: 9. 0% to $41. 00.

All stocks in this comparison pay dividends.

Southern Missouri Bancorp, Inc. (SMBC) offers the highest yield at 1. 3%, versus 0. 3% for Live Oak Bancshares, Inc. (LOB).

For long-horizon retirement investors, Southern Missouri Bancorp, Inc.

(SMBC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 86), 1. 3% yield, +209. 1% 10Y return). Both have compounded well over 10 years (SMBC: +209. 1%, LOB: +142. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

SMBC pays a dividend while LOB does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.