Analyzing Bank OZK (OZK) & Its Competitors

Bank OZK (NASDAQ:OZK) is one of 919 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Bank OZK to similar businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a summary of recent ratings for Bank OZK and its peers, 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	7482	30219	27791	1473	2.35

Bank OZK currently has a consensus target price of $55.14, suggesting a potential upside of 8.89%. As a group, “Banks” companies have a potential upside of 16.80%. Given Bank OZK’s peers stronger consensus rating and higher probable upside, analysts plainly believe Bank OZK has less favorable growth aspects than its peers.

Institutional & Insider Ownership

86.2% of Bank OZK shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 6.7% of Bank OZK shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Bank OZK and its peers gross 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	$9.95 billion	$2.42 billion	20.28

Bank OZK’s peers have higher revenue and 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.

Risk and Volatility

Bank OZK has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Bank OZK’s peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

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 9.3% and pay out 28.9% of their earnings in the form of a dividend. Bank OZK has increased its dividend for 29 consecutive years. Bank OZK lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

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	24.70%	11.56%	1.61%
Bank OZK Competitors	15.66%	9.44%	0.93%

Summary

Bank OZK peers 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.