Head to Head Analysis: FB Financial (FBK) vs. Bank Of The Ozarks (OZRK)

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FB Financial (NYSE: FBK) and Bank Of The Ozarks (NASDAQ:OZRK) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Earnings and Valuation

This table compares FB Financial and Bank Of The Ozarks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FB Financial $311.19 million 4.30 $52.39 million $2.14 20.40
Bank Of The Ozarks $1.06 billion 5.00 $421.89 million $2.96 13.93

Bank Of The Ozarks has higher revenue and earnings than FB Financial. Bank Of The Ozarks is trading at a lower price-to-earnings ratio than FB Financial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

FB Financial has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Bank Of The Ozarks has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Insider & Institutional Ownership

39.5% of FB Financial shares are held by institutional investors. Comparatively, 90.9% of Bank Of The Ozarks shares are held by institutional investors. 6.1% of FB Financial shares are held by insiders. Comparatively, 6.7% of Bank Of The Ozarks shares are held 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.

Profitability

This table compares FB Financial and Bank Of The Ozarks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FB Financial 20.27% 13.58% 1.72%
Bank Of The Ozarks 41.20% 12.05% 1.95%

Analyst Recommendations

This is a summary of recent ratings for FB Financial and Bank Of The Ozarks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FB Financial 0 2 3 0 2.60
Bank Of The Ozarks 1 3 6 1 2.64

FB Financial presently has a consensus target price of $42.60, suggesting a potential downside of 2.43%. Bank Of The Ozarks has a consensus target price of $54.90, suggesting a potential upside of 33.12%. Given Bank Of The Ozarks’ stronger consensus rating and higher probable upside, analysts plainly believe Bank Of The Ozarks is more favorable than FB Financial.

Dividends

FB Financial pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Bank Of The Ozarks pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. FB Financial pays out 5.6% of its earnings in the form of a dividend. Bank Of The Ozarks pays out 27.0% 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 raised its dividend for 7 consecutive years. Bank Of The Ozarks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Bank Of The Ozarks beats FB Financial on 15 of the 18 factors compared between the two stocks.

About FB Financial

FB Financial Corporation operates as a holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in two segments, Banking and Mortgage. It provides demand, negotiable order of withdrawal, money market, certificates of deposit, and municipal and savings accounts, as well as time deposits. The company also offers commercial lending products that include working capital lines of credit, equipment loans, owner-occupied and non-owner-occupied real estate construction loans, real estate term loans, and cash flow loans to small and medium sized businesses; and consumer lending products comprising first and second residential mortgage loans, and home equity lines of credit, as well as consumer installment loans to purchase cars, boats, and other recreational vehicles. In addition, it provides residential mortgage banking services through its bank branch network and mortgage banking offices located in the southeastern United States; and an Internet delivery channel, as well as third-party mortgage services to smaller community banks and mortgage companies. Further, the company offers investment services, including equities, mutual funds, bonds, tax-exempt municipals, and annuities; and money management consultation and life insurance products, as well as retirement plan advisory services to business clients. As of January 22, 2018, it operated 58 full-service bank branches across Tennessee, North Alabama, and North Georgia. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in March 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.

About Bank Of The Ozarks

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.

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