Southwest Bancorp (NASDAQ: OKSB) and Valley National Bancorp (NYSE:VLY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Valuation and Earnings

This table compares Southwest Bancorp and Valley National Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Southwest Bancorp $96.35 million 4.88 $21.49 million $1.15 21.87
Valley National Bancorp $708.66 million 4.28 $184.78 million $0.70 16.41

Valley National Bancorp has higher revenue and earnings than Southwest Bancorp. Valley National Bancorp is trading at a lower price-to-earnings ratio than Southwest Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Southwest Bancorp and Valley National Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southwest Bancorp 19.38% 7.44% 0.86%
Valley National Bancorp 20.73% 8.39% 0.82%

Volatility and Risk

Southwest Bancorp has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Valley National Bancorp has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

77.4% of Southwest Bancorp shares are owned by institutional investors. Comparatively, 62.5% of Valley National Bancorp shares are owned by institutional investors. 6.4% of Southwest Bancorp shares are owned by insiders. Comparatively, 3.1% of Valley National Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Southwest Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Valley National Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 3.8%. Southwest Bancorp pays out 27.8% of its earnings in the form of a dividend. Valley National Bancorp pays out 62.9% 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.

Analyst Ratings

This is a breakdown of current ratings for Southwest Bancorp and Valley National Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwest Bancorp 0 5 1 0 2.17
Valley National Bancorp 0 5 2 0 2.29

Southwest Bancorp presently has a consensus price target of $25.00, indicating a potential downside of 0.60%. Valley National Bancorp has a consensus price target of $12.60, indicating a potential upside of 9.66%. Given Valley National Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Valley National Bancorp is more favorable than Southwest Bancorp.

Southwest Bancorp Company Profile

Southwest Bancorp, Inc. is a financial holding company. The Company operates in four segments: Oklahoma Banking, Texas Banking, Kansas Banking and Other Operations. The Oklahoma Banking segment provides deposit and lending services and consists of residential mortgage lending services to customers. The Texas Banking segment and the Kansas Banking segment provide deposit and lending services. Other Operations segment includes funds management unit and corporate investments. The Oklahoma Banking segment includes the Stillwater division, the Central Oklahoma division based in Oklahoma City, the Tulsa division, and the Colorado division based in Denver; Texas Banking segment includes the Dallas division, the Fort Worth division, the Austin division and the San Antonio division, and Kansas Banking segment includes the Wichita division and the Hutchinson division. The Stillwater division, Hutchinson division and Denver division serve their respective markets as full-service community banks.

Valley National Bancorp Company Profile

Valley National Bancorp is the bank holding company for Valley National Bank (the Bank). The Bank provides a range of commercial, retail, insurance and wealth management financial services products. The Company’s segments include Consumer Lending, Commercial Lending, Investment Management, and Corporate and Other Adjustments. The Consumer Lending segment primarily includes residential mortgages, home equity loans and automobile loans. The Commercial Lending segment primarily includes floating rate and adjustable rate commercial and industrial loans, as well as fixed rate owner occupied and commercial real estate loans. The Investment Management segment includes the Company’s investments in various types of securities. As of July 26, 2017, the Bank operated 200 branch locations serving northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn, Queens and Long Island, and Florida.

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