Head-To-Head Review: Southwest Bancorp (OKSB) vs. Banco Santander (SAN)

Southwest Bancorp (NASDAQ: OKSB) and Banco Santander (NYSE:SAN) are both banks – nec companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Southwest Bancorp and Banco Santander, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwest Bancorp 0 3 1 0 2.25
Banco Santander 1 3 6 0 2.50

Southwest Bancorp currently has a consensus target price of $29.00, indicating a potential upside of 1.93%. Banco Santander has a consensus target price of $15.85, indicating a potential upside of 118.62%. Given Banco Santander’s stronger consensus rating and higher possible upside, analysts clearly believe Banco Santander is more favorable than Southwest Bancorp.

Earnings and Valuation

This table compares Southwest Bancorp and Banco Santander’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southwest Bancorp N/A N/A N/A $1.14 24.96
Banco Santander $48.53 billion 2.40 $6.87 billion $0.56 12.95

Banco Santander has higher revenue and earnings than Southwest Bancorp. Banco Santander 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 Banco Santander’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southwest Bancorp 22.47% 7.82% 0.92%
Banco Santander 14.06% 6.86% 0.52%

Dividends

Southwest Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Banco Santander pays an annual dividend of $0.14 per share and has a dividend yield of 1.9%. Southwest Bancorp pays out 28.1% of its earnings in the form of a dividend. Banco Santander pays out 25.0% 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. Banco Santander is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

77.0% of Southwest Bancorp shares are owned by institutional investors. Comparatively, 1.3% of Banco Santander shares are owned by institutional investors. 6.4% of Southwest Bancorp shares are owned by insiders. Comparatively, 9.5% of Banco Santander shares are owned 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.

Summary

Banco Santander beats Southwest Bancorp on 7 of the 13 factors compared between the two stocks.

About Southwest Bancorp

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.

About Banco Santander

Banco Santander, S.A. is a retail and commercial bank. The Banks segments include Continental Europe, the United Kingdom, Latin America and the United States. The Continental Europe segment covers all businesses in the Continental Europe. The United Kingdom segment includes the businesses developed by various units and branches in the country. The Latin America segment embraces all its financial activities conducted through its banks and subsidiaries in the region. The United States segment includes the Intermediate Holding Company (IHC) and its subsidiaries Santander Bank, Banco Santander Puerto Rico, Santander Consumer USA, Banco Santander International, Santander Investment Securities, and the Santander branch in New York. The Company’s commercial model satisfies the needs of all types of customers: individuals with various income levels.

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