Head to Head Contrast: Provident Financial Services (PFS) vs. BOK Financial Corporation (BOKF)

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

Dividends

Provident Financial Services pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. BOK Financial Corporation pays an annual dividend of $1.76 per share and has a dividend yield of 2.0%. Provident Financial Services pays out 54.8% of its earnings in the form of a dividend. BOK Financial Corporation pays out 38.3% 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. Provident Financial Services has increased its dividend for 6 consecutive years and BOK Financial Corporation has increased its dividend for 12 consecutive years.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Provident Financial Services $318.11 million 5.78 $97.02 million $1.46 18.94
BOK Financial Corporation $1.46 billion 4.04 $300.26 million $4.59 19.65

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.

Analyst Recommendations

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

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

Provident Financial Services currently has a consensus price target of $26.88, indicating a potential downside of 2.80%. BOK Financial Corporation has a consensus price target of $89.57, indicating a potential downside of 0.70%. Given BOK Financial Corporation’s higher possible upside, analysts plainly believe BOK Financial Corporation is more favorable than Provident Financial Services.

Profitability

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

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

Insider and Institutional Ownership

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

Volatility & Risk

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

Summary

BOK Financial Corporation beats Provident Financial Services on 9 of the 15 factors compared between the two stocks.

Provident Financial Services Company Profile

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.

BOK Financial Corporation Company Profile

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.

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