International Bancshares (NASDAQ:IBOC) versus Bank Ozk (NASDAQ:OZK) Critical Analysis

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

Volatility and Risk

Bank Ozk has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500. Comparatively, International Bancshares has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Bank Ozk and International Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank Ozk 0 4 2 0 2.33
International Bancshares 0 0 0 0 N/A

Bank Ozk presently has a consensus price target of $33.67, indicating a potential upside of 14.12%. Given Bank Ozk’s higher probable upside, equities analysts clearly believe Bank Ozk is more favorable than International Bancshares.

Institutional and Insider Ownership

82.2% of Bank Ozk shares are owned by institutional investors. Comparatively, 59.8% of International Bancshares shares are owned by institutional investors. 6.7% of Bank Ozk shares are owned by insiders. Comparatively, 16.0% of International Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Bank Ozk pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. International Bancshares pays an annual dividend of $1.10 per share and has a dividend yield of 2.6%. Bank Ozk pays out 30.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Bank Ozk and International Bancshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank Ozk $1.21 billion 3.15 $417.11 million $3.24 9.10
International Bancshares $630.86 million 4.38 $215.93 million N/A N/A

Bank Ozk has higher revenue and earnings than International Bancshares.

Profitability

This table compares Bank Ozk and International Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank Ozk 34.43% 11.19% 1.92%
International Bancshares 32.56% 10.52% 1.76%

Summary

Bank Ozk beats International Bancshares on 10 of the 14 factors compared between the two stocks.

Bank Ozk Company Profile

Bank OZK provides retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The company accepts non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. Its loan products include loans secured by residential 1-4 family, non-farm/non-residential, agricultural, construction/land development, multifamily residential properties, and other land loans; small business and consumer loans; indirect consumer marine and RV loans; small business administration, farm service agency, and USDA guaranteed loans; commercial and industrial loans; and loans to businesses or individuals engages in the production of timber, poultry, livestock, or crops. The company also ACH, wire transfer, zero balance accounts, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, investment sweep accounts, reconciliation, positive pay, and merchant and commercial card services. In addition, it provides personal trusts, custodial accounts, investment management accounts, and retirement accounts; and trustee, paying agent and registered transfer agent services, and other incidental services. Further, the company is involved in the provision of real estate appraisals; ATMs; telephone banking; electronic bill pay and mobile deposits; debit cards; safe deposit boxes; investment securities services; and other products and services, as well as processes merchant debit and credit card transactions, as well as real estate development and corporate aircraft businesses. As of December 31, 2018, it operated 251 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.

International Bancshares Company Profile

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services. 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. In addition, it offers other banking related services, such as credit cards and safety deposit boxes; collection, notary public, escrow, and drive up and walk up facilities, as well as other customary banking services; and Internet banking services, as well as securities products through third party providers. As of February 27, 2019, the company had 189 branch facilities and 287 ATMs serving 89 communities in Texas and Oklahoma. International Bancshares Corporation was founded in 1966 and is based in Laredo, Texas.

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