Critical Survey: Bank of the Ozarks (OZRK) and The Competition

Bank of the Ozarks (NASDAQ: OZRK) is one of 311 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Bank of the Ozarks to related companies based on the strength of its earnings, profitability, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings



This table compares Bank of the Ozarks and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Bank of the Ozarks $764.95 million $269.97 million 15.04
Bank of the Ozarks Competitors $5.47 billion $817.91 million 360.89

Bank of the Ozarks’ rivals have higher revenue and earnings than Bank of the Ozarks. Bank of the Ozarks 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 and Volatility

Bank of the Ozarks has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Bank of the Ozarks’ rivals have a beta of 0.80, indicating that their average stock price is 20% less volatile than the S&P 500.

Dividends

Bank of the Ozarks pays an annual dividend of $0.74 per share and has a dividend yield of 1.7%. Bank of the Ozarks pays out 25.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.0% of their earnings in the form of a dividend. Bank of the Ozarks has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Bank of the Ozarks and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of the Ozarks 0 2 6 0 2.75
Bank of the Ozarks Competitors 2123 8339 8358 329 2.36

Bank of the Ozarks currently has a consensus price target of $54.13, indicating a potential upside of 22.82%. As a group, “Banks” companies have a potential downside of 0.73%. Given Bank of the Ozarks’ stronger consensus rating and higher possible upside, analysts clearly believe Bank of the Ozarks is more favorable than its rivals.

Insider and Institutional Ownership

87.8% of Bank of the Ozarks shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Banks” companies are owned by institutional investors. 6.7% of Bank of the Ozarks shares are owned by insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Bank of the Ozarks 65.67% 11.85% 1.84%
Bank of the Ozarks Competitors 18.42% 8.61% 0.93%

Summary

Bank of the Ozarks beats its rivals on 9 of the 15 factors compared.

About Bank of the Ozarks

Bank of the Ozarks, Inc. is a state chartered bank that provides retail and commercial banking services. Its deposit services include checking, savings, money market, time deposit and individual retirement accounts. Its loan services include various types of real estate, consumer, commercial, industrial and agricultural loans and various leasing services. It also provides mortgage lending; treasury management services for businesses, individuals and non-profit and governmental entities, including wholesale lock box services; remote deposit capture services; trust and wealth management services for businesses, individuals and non-profit and governmental entities, including financial planning, money management, custodial services and corporate trust services; real estate appraisals; automated teller machines (ATMs); telephone banking; online and mobile banking services, including electronic bill pay and consumer mobile deposits, and debit cards, gift cards and safe deposit boxes.

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