Contrasting International Bancshares (NASDAQ:IBOC) and BOK Financial (NASDAQ:BOKF)

International Bancshares (NASDAQ:IBOC) and BOK Financial (NASDAQ:BOKF) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares International Bancshares and BOK Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$1.04 billion	4.08	$409.17 million	$6.76	10.12
BOK Financial	$3.48 billion	2.24	$523.57 million	$8.39	14.65

BOK Financial has higher revenue and earnings than International Bancshares. International Bancshares is trading at a lower price-to-earnings ratio than BOK Financial, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

65.9% of International Bancshares shares are owned by institutional investors. Comparatively, 34.4% of BOK Financial shares are owned by institutional investors. 13.4% of International Bancshares shares are owned by insiders. Comparatively, 60.1% of BOK Financial 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.

Analyst Recommendations

This is a summary of current ratings and target prices for International Bancshares and BOK Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	1	0	3.00
BOK Financial	0	7	3	0	2.30

International Bancshares currently has a consensus target price of $85.00, suggesting a potential upside of 24.29%. BOK Financial has a consensus target price of $117.91, suggesting a potential downside of 4.07%. Given International Bancshares’ stronger consensus rating and higher possible upside, equities analysts clearly believe International Bancshares is more favorable than BOK Financial.

Volatility & Risk

International Bancshares has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, BOK Financial has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares International Bancshares and BOK Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	40.10%	14.20%	2.59%
BOK Financial	15.98%	9.24%	1.07%

Dividends

International Bancshares pays an annual dividend of $1.40 per share and has a dividend yield of 2.0%. BOK Financial pays an annual dividend of $2.52 per share and has a dividend yield of 2.1%. International Bancshares pays out 20.7% of its earnings in the form of a dividend. BOK Financial pays out 30.0% 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. International Bancshares has increased its dividend for 16 consecutive years and BOK Financial has increased its dividend for 20 consecutive years. BOK Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

BOK Financial beats International Bancshares on 9 of the 17 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

About BOK Financial

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, manufacturing, wholesale/retail, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and automated teller machine, call center, and Internet and mobile banking services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.