Head-To-Head Comparison: Bank Ozk (OZK) vs. Its Peers

Bank Ozk (NASDAQ: OZK) is one of 260 public companies in the “State commercial banks” industry, but how does it compare to its peers? We will compare Bank Ozk to related companies based on the strength of its dividends, valuation, risk, institutional ownership, earnings, analyst recommendations and profitability.

Dividends

Bank Ozk pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Bank Ozk pays out 27.0% of its earnings in the form of a dividend. As a group, “State commercial banks” companies pay a dividend yield of 1.9% and pay out 34.5% of their earnings in the form of a dividend. Bank Ozk is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Bank Ozk and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Bank Ozk $1.06 billion $421.89 million 13.17
Bank Ozk Competitors $1.45 billion $237.26 million 19.42

Bank Ozk’s peers have higher revenue, but lower earnings than Bank Ozk. Bank Ozk is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

87.1% of Bank Ozk shares are owned by institutional investors. Comparatively, 46.6% of shares of all “State commercial banks” companies are owned by institutional investors. 6.7% of Bank Ozk shares are owned by company insiders. Comparatively, 11.6% of shares of all “State commercial banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Bank Ozk has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Bank Ozk’s peers have a beta of 0.57, indicating that their average stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Bank Ozk and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank Ozk 41.20% 12.05% 1.95%
Bank Ozk Competitors 19.19% 8.37% 0.83%

Analyst Ratings

This is a summary of recent ratings for Bank Ozk and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank Ozk 1 1 1 0 2.00
Bank Ozk Competitors 1242 5461 4523 255 2.33

Bank Ozk currently has a consensus price target of $48.00, suggesting a potential upside of 23.14%. As a group, “State commercial banks” companies have a potential upside of 9.43%. Given Bank Ozk’s higher probable upside, equities research analysts clearly believe Bank Ozk is more favorable than its peers.

Summary

Bank Ozk beats its peers on 9 of the 15 factors compared.

About Bank Ozk

Bank OZK provides a range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The company accepts non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. Its loan products include real estate loans, such as loans secured by residential 1-4 family, non-farm/non-residential, agricultural, construction/land development, multifamily residential properties, and other land loans; small business and consumer loans; indirect consumer marine and RV loans; and government guaranteed loans comprising SBA and FSA guaranteed loans. The company's loan products also consist of commercial and industrial loans, and leases; and agricultural loans, including loans to businesses or individuals engages in the production of timber, poultry, livestock, or crops. In addition, it is involved in the provision of mortgage lending; treasury management services, such as wholesale lock box services; remote deposit capture services; and trust and wealth management services comprising financial planning, money management, custodial, and corporate trust services, as well as real estate development and corporate aircraft businesses. Further, the company provides real estate appraisals; ATMs; telephone banking; online and mobile banking services consisting of electronic bill pay and mobile deposits; debit, gift, and credit cards; safe deposit boxes; investment securities services; and other products and services, as well as processes merchant debit and credit card transactions. As of December 31, 2017, it operated through 253 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1981 and is headquartered in Little Rock, Arkansas.

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