Head-To-Head Review: Bank OZK (OZK) versus Its Peers

Bank OZK (NASDAQ:OZK) is one of 920 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Bank OZK to related businesses based on the strength of its dividends, earnings, institutional ownership, valuation, profitability, analyst recommendations and risk.

Profitability

This table compares Bank OZK and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank OZK	24.70%	11.56%	1.61%
Bank OZK Competitors	15.38%	9.45%	0.93%

Dividends

Bank OZK pays an annual dividend of $1.96 per share and has a dividend yield of 3.9%. Bank OZK pays out 32.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 29.0% of their earnings in the form of a dividend. Bank OZK has raised its dividend for 29 consecutive years. Bank OZK lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Bank OZK	$2.81 billion	$715.48 million	8.50
Bank OZK Competitors	$292.34 billion	$2.41 billion	18.77

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

Risk & Volatility

Bank OZK has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Bank OZK’s rivals have a beta of 0.51, indicating that their average stock price is 49% less volatile than the S&P 500.

Institutional & Insider Ownership

86.2% of Bank OZK shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 6.7% of Bank OZK shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Bank OZK and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank OZK	2	6	3	0	2.09
Bank OZK Competitors	7457	30157	27705	1451	2.35

Bank OZK currently has a consensus price target of $55.14, indicating a potential upside of 8.87%. As a group, “Banks” companies have a potential upside of 17.33%. Given Bank OZK’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Bank OZK has less favorable growth aspects than its rivals.

Summary

Bank OZK rivals beat Bank OZK on 10 of the 15 factors compared.

About Bank OZK

Bank OZK provides various retail and commercial banking services for individuals and businesses in the United States. The company offers deposit services, including non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time and reciprocal deposits. It also provides trust and wealth services, such as personal trusts, custodial accounts, investment management accounts, and retirement accounts, as well as corporate trust services, including trustee, paying agent and registered transfer agent services, and other related services. In addition, the company offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, commercial card, and other services, as well as zero balance and investment sweep accounts. Further, it provides real estate, consumer, small business, indirect recreational vehicle and marine, equipment, agricultural, commercial and industrial, government guaranteed, lines of credit, homebuilder, and affordable housing loans; lender and structured, business aviation, and subscription financing services; and mortgage and other lending products. Additionally, the company offers ATMs; telephone, online, and mobile banking services; credit and debit cards; safe deposit boxes; and other products and services. 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 1903 and is headquartered in Little Rock, Arkansas.