BOK Financial Corporation (NASDAQ: BOKF) and Provident Financial Services (NYSE:PFS) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Profitability

This table compares BOK Financial Corporation and Provident Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BOK Financial Corporation 18.96% 8.87% 0.92%
Provident Financial Services 25.39% 7.40% 0.98%

Earnings and Valuation

This table compares BOK Financial Corporation and Provident Financial Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BOK Financial Corporation $1.46 billion 4.02 $300.26 million $4.59 19.54
Provident Financial Services $318.11 million 5.66 $97.02 million $1.46 18.57

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

Risk and Volatility

BOK Financial Corporation has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Provident Financial Services has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BOK Financial Corporation and Provident Financial Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BOK Financial Corporation 0 7 2 0 2.22
Provident Financial Services 0 3 2 0 2.40

BOK Financial Corporation currently has a consensus target price of $89.57, indicating a potential downside of 0.15%. Provident Financial Services has a consensus target price of $26.88, indicating a potential downside of 0.87%. Given BOK Financial Corporation’s higher possible upside, equities analysts plainly believe BOK Financial Corporation is more favorable than Provident Financial Services.

Institutional and Insider Ownership

31.7% of BOK Financial Corporation shares are owned by institutional investors. Comparatively, 61.2% of Provident Financial Services shares are owned by institutional investors. 62.0% of BOK Financial Corporation shares are owned by company insiders. Comparatively, 2.9% of Provident Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

BOK Financial Corporation pays an annual dividend of $1.76 per share and has a dividend yield of 2.0%. Provident Financial Services pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. BOK Financial Corporation pays out 38.3% of its earnings in the form of a dividend. Provident Financial Services pays out 54.8% 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 Corporation has increased its dividend for 6 consecutive years and Provident Financial Services has increased its dividend for 12 consecutive years. Provident Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

BOK Financial Corporation beats Provident Financial Services on 8 of the 15 factors compared between the two stocks.

About BOK Financial Corporation

BOK Financial Corporation is a financial holding company. The Company offers full service banking in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona and Kansas/Missouri. The Company’s segments include Commercial Banking, Consumer Banking, Wealth Management, and Funds Management and Other. The Commercial Banking segment includes lending, treasury and cash management services, and customer risk management products for small businesses, middle market and commercial customers. The Commercial Banking segment also includes the TransFund Electronic Funds Network. The Consumer Banking segment includes retail lending and deposit services, lending and deposit services to small business customers served through the retail branch network and all mortgage banking activities. The Wealth Management segment provides fiduciary services, private bank services and investment advisory services in all markets.

About Provident Financial Services

Provident Financial Services Inc. is a holding company for The Provident Bank (the Bank). The Bank is a New Jersey-chartered capital stock savings bank. As a community and customer-oriented institution, the Bank provides personal service and customer convenience in serving the financial needs of the individuals, families and businesses residing in its primary markets areas. The Bank attracts deposits from the general public and businesses in the areas surrounding its banking offices and uses those funds, together with funds generated from operations and borrowings, to originate commercial real estate loans, residential mortgage loans, commercial business loans and consumer loans. The Bank also invests in mortgage-backed securities and other permissible investments. It operates service branch offices in the New Jersey counties of Hudson, Bergen, Essex, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, as well as in Bucks, Lehigh and Northampton counties in Pennsylvania.

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