Financial Contrast: BOK Financial Corporation (BOKF) vs. Great Western Bancorp (GWB)
BOK Financial Corporation (NASDAQ: BOKF) and Great Western Bancorp (NYSE:GWB) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Volatility and Risk
BOK Financial Corporation has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Great Western Bancorp has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for BOK Financial Corporation and Great Western Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BOK Financial Corporation||0||7||2||0||2.22|
|Great Western Bancorp||0||2||6||0||2.75|
BOK Financial Corporation currently has a consensus target price of $89.57, indicating a potential downside of 0.42%. Great Western Bancorp has a consensus target price of $46.14, indicating a potential upside of 14.05%. Given Great Western Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Great Western Bancorp is more favorable than BOK Financial Corporation.
BOK Financial Corporation pays an annual dividend of $1.76 per share and has a dividend yield of 2.0%. Great Western Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.0%. BOK Financial Corporation pays out 38.3% of its earnings in the form of a dividend. Great Western Bancorp pays out 33.5% 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. BOK Financial Corporation has increased its dividend for 12 consecutive years. Great Western Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares BOK Financial Corporation and Great Western Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BOK Financial Corporation||18.96%||8.87%||0.92%|
|Great Western Bancorp||28.55%||8.44%||1.25%|
Earnings & Valuation
This table compares BOK Financial Corporation and Great Western Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BOK Financial Corporation||$1.46 billion||4.03||$300.26 million||$4.59||19.60|
|Great Western Bancorp||$430.11 million||5.53||$140.44 million||$2.39||16.93|
BOK Financial Corporation has higher revenue and earnings than Great Western Bancorp. Great Western Bancorp 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.
Insider & Institutional Ownership
31.7% of BOK Financial Corporation shares are held by institutional investors. 62.0% of BOK Financial Corporation shares are held by company insiders. Comparatively, 0.2% of Great Western Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Great Western Bancorp beats BOK Financial Corporation on 9 of the 17 factors compared between the two stocks.
About BOK Financial Corporation
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.
About Great Western Bancorp
Great Western Bancorp, Inc. is a full-service regional bank holding company. The Company is the holding company of the Great Western Bank (the Bank). As of September 30, 2016, the Company served customers through 173 branches in various markets in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. The Company focuses on business and agribusiness banking, complemented by retail banking and wealth management services. The Company’s loan portfolio consists primarily of business loans, consisting of commercial and industrial loans (C&I), commercial real estate loans and agribusiness loans. The Company offers its business banking customers a focused range of financial products designed to meet the specific needs of their businesses, including loans, lines of credit, cash management services, online business deposit and wire transfer services, in addition to non-interest-bearing demand deposit and savings accounts, and corporate credit cards.
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