Bank Of The Ozarks (NASDAQ: QCRH) and QCR (NASDAQ:QCRH) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.
This table compares Bank Of The Ozarks and QCR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank Of The Ozarks||41.20%||12.05%||1.95%|
This table compares Bank Of The Ozarks and QCR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bank Of The Ozarks||$1.06 billion||5.00||$421.89 million||$2.96||13.93|
|QCR||$166.00 million||4.09||$35.70 million||$2.66||16.30|
Bank Of The Ozarks has higher revenue and earnings than QCR. Bank Of The Ozarks is trading at a lower price-to-earnings ratio than QCR, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
90.9% of Bank Of The Ozarks shares are held by institutional investors. Comparatively, 56.9% of QCR shares are held by institutional investors. 6.7% of Bank Of The Ozarks shares are held by insiders. Comparatively, 8.8% of QCR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Bank Of The Ozarks has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, QCR has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
This is a summary of recent recommendations for Bank Of The Ozarks and QCR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank Of The Ozarks||1||3||6||1||2.64|
Bank Of The Ozarks presently has a consensus price target of $54.90, indicating a potential upside of 33.12%. QCR has a consensus price target of $53.60, indicating a potential upside of 23.64%. Given Bank Of The Ozarks’ higher possible upside, equities research analysts plainly believe Bank Of The Ozarks is more favorable than QCR.
Bank Of The Ozarks pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Bank Of The Ozarks pays out 27.0% of its earnings in the form of a dividend. QCR pays out 9.0% 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. Bank Of The Ozarks has increased its dividend for 7 consecutive years and QCR has increased its dividend for 2 consecutive years. Bank Of The Ozarks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Bank Of The Ozarks beats QCR on 14 of the 18 factors compared between the two stocks.
Bank Of The Ozarks Company Profile
Bank of the Ozarks provides a range of 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 real estate loans, such as 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; and government guaranteed loans comprising SBA and FSA guaranteed loans. The company's loan products also consist of commercial and industrial loans, and leases; and agricultural loans, including loans to businesses or individuals engages in the production of timber, poultry, livestock, or crops. In addition, it is involved in the provision of mortgage lending; treasury management services, such as wholesale lock box services; remote deposit capture services; and trust and wealth management services comprising financial planning, money management, custodial, and corporate trust services, as well as real estate development and corporate aircraft businesses. Further, the company provides real estate appraisals; ATMs; telephone banking; online and mobile banking services consisting of electronic bill pay and mobile deposits; debit, gift, and credit cards; safe deposit boxes; investment securities services; and other products and services, as well as processes merchant debit and credit card transactions. As of December 31, 2017, it operated through 253 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. Bank of the Ozarks was founded in 1981 and is headquartered in Little Rock, Arkansas.
QCR Company Profile
QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company operates through Commercial Banking and Wealth Management segments. Its deposit products include noninterest and interest-bearing demand, time, and brokered time deposits. The company also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. Its loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, the company engages in leasing machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuing various trust preferred securities. It serves the Quad Cities, Cedar Rapids, Waterloo/Cedar Falls, Des Moines/Ankeny, and Rockford communities. The company was founded in 1993 and is headquartered in Moline, Illinois.
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