Critical Contrast: Simmons First National (SFNC) vs. BOK Financial (BOKF)

Simmons First National (NASDAQ: SFNC) and BOK Financial (NASDAQ:BOKF) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Valuation & Earnings

This table compares Simmons First National and BOK Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Simmons First National $533.77 million 5.44 $92.94 million $1.71 18.42
BOK Financial $1.67 billion 4.11 $334.64 million $5.29 19.81

BOK Financial has higher revenue and earnings than Simmons First National. Simmons First National is trading at a lower price-to-earnings ratio than BOK Financial, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

28.1% of Simmons First National shares are held by institutional investors. Comparatively, 33.5% of BOK Financial shares are held by institutional investors. 2.8% of Simmons First National shares are held by company insiders. Comparatively, 60.5% of BOK Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Simmons First National has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, BOK Financial has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Dividends

Simmons First National pays an annual dividend of $0.60 per share and has a dividend yield of 1.9%. BOK Financial pays an annual dividend of $1.80 per share and has a dividend yield of 1.7%. Simmons First National pays out 35.1% of its earnings in the form of a dividend. BOK Financial pays out 34.0% 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. BOK Financial has increased its dividend for 13 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Simmons First National and BOK Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simmons First National 0 2 2 0 2.50
BOK Financial 0 7 1 0 2.13

Simmons First National presently has a consensus target price of $33.33, suggesting a potential upside of 5.82%. BOK Financial has a consensus target price of $102.00, suggesting a potential downside of 2.67%. Given Simmons First National’s stronger consensus rating and higher possible upside, research analysts clearly believe Simmons First National is more favorable than BOK Financial.

Profitability

This table compares Simmons First National and BOK Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Simmons First National 19.70% 8.92% 1.21%
BOK Financial 20.79% 10.39% 1.11%

Summary

BOK Financial beats Simmons First National on 10 of the 17 factors compared between the two stocks.

Simmons First National Company Profile

Simmons First National Corporation operates as the holding company for Simmons Bank that provides financial products and services to individuals and businesses. It offers checking, savings, and time deposits; loan products, including consumer, real estate, commercial, agricultural, equipment, and SBA lending; personal and corporate trust services; credit cards; investment management products; insurance products; and securities and investment services. The company conducts banking operations through approximately 200 financial centers located in communities throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee, and Texas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

BOK Financial Company Profile

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, and cash management services, as well as customer risk management products for small businesses, middle market, and larger commercial customers. This segment also operates TransFund electronic funds network. The Consumer Banking segment provides lending and deposit services to small business customers through the retail branch network; and mortgage banking services. The Wealth Management segment offers fiduciary, private banking, and investment advisory services; and brokerage and trading services, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, wholesale/retail sector, and energy sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other enhancements to real estate and property held by borrowers for investment purposes; and residential mortgage, personal, and home equity loans. Further, the company provides automated teller machines, call center, and Internet and mobile banking services. As of December 31, 2017, it operated 2,223 TransFund ATM locations. BOK Financial Corporation was founded in 1910 and is headquartered in Tulsa, Oklahoma.

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