Southwest Bancorp (NASDAQ: OKSB) and Bank of Commerce (NASDAQ:BOCH) are both small-cap financials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
This table compares Southwest Bancorp and Bank of Commerce’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank of Commerce||14.47%||8.42%||0.82%|
Southwest Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Bank of Commerce pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Southwest Bancorp pays out 28.1% of its earnings in the form of a dividend. Bank of Commerce pays out 24.0% 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.
This is a breakdown of current recommendations for Southwest Bancorp and Bank of Commerce, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank of Commerce||0||1||0||0||2.00|
Southwest Bancorp currently has a consensus price target of $29.00, suggesting a potential upside of 1.93%. Bank of Commerce has a consensus price target of $12.00, suggesting a potential upside of 1.69%. Given Southwest Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Southwest Bancorp is more favorable than Bank of Commerce.
Earnings and Valuation
This table compares Southwest Bancorp and Bank of Commerce’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bank of Commerce||$50.77 million||3.78||$7.34 million||$0.50||23.60|
Bank of Commerce has higher revenue and earnings than Southwest Bancorp. Bank of Commerce is trading at a lower price-to-earnings ratio than Southwest Bancorp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
77.0% of Southwest Bancorp shares are held by institutional investors. Comparatively, 53.2% of Bank of Commerce shares are held by institutional investors. 6.4% of Southwest Bancorp shares are held by company insiders. Comparatively, 6.9% of Bank of Commerce shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Southwest Bancorp beats Bank of Commerce on 9 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 Bank of Commerce
Bank of Commerce Holdings (Holding Company) is a bank holding company. The Company’s principal business is to serve as a holding company for Redding Bank of Commerce (Bank), which operates under two separate names (Redding Bank of Commerce and Sacramento Bank of Commerce). The Bank operates over four full service facilities in two diverse markets in Northern California. The Bank provides a range of financial services and products for business and retail customers. Its principal products include various types of accounts, such as checking, interest-bearing checking, savings, certificate of deposit and money market deposit. It also offers sweep arrangements, commercial loans, construction loans, term loans, safe deposit boxes and electronic banking services. The primary focus of the Bank is to provide banking and related services to small and mid-sized businesses and not-for-profit organizations, as well as banking services for consumers, primarily business owners and their employees.
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