Comparing Guaranty Bancorp (GBNK) and Bank Of The Ozarks (OZRK)

Guaranty Bancorp (NASDAQ:GBNK) and Bank Of The Ozarks (NASDAQ:OZRK) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Guaranty Bancorp and Bank Of The Ozarks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guaranty Bancorp 0 2 1 0 2.33
Bank Of The Ozarks 1 3 6 1 2.64

Guaranty Bancorp presently has a consensus price target of $34.17, indicating a potential upside of 12.39%. Bank Of The Ozarks has a consensus price target of $54.90, indicating a potential upside of 33.12%. Given Bank Of The Ozarks’ stronger consensus rating and higher possible upside, analysts clearly believe Bank Of The Ozarks is more favorable than Guaranty Bancorp.

Valuation and Earnings

This table compares Guaranty Bancorp and Bank Of The Ozarks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guaranty Bancorp $159.75 million 5.58 $38.62 million $1.53 19.87
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 Guaranty Bancorp. Bank Of The Ozarks is trading at a lower price-to-earnings ratio than Guaranty Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Guaranty Bancorp 26.57% 12.61% 1.38%
Bank Of The Ozarks 41.20% 12.05% 1.95%

Insider and Institutional Ownership

73.5% of Guaranty Bancorp shares are owned by institutional investors. Comparatively, 90.9% of Bank Of The Ozarks shares are owned by institutional investors. 13.3% of Guaranty Bancorp shares are owned by company insiders. Comparatively, 6.7% of Bank Of The Ozarks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Guaranty Bancorp pays an annual dividend of $0.65 per share and has a dividend yield of 2.1%. Bank Of The Ozarks pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. Guaranty Bancorp pays out 42.5% 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. Guaranty Bancorp has increased its dividend for 4 consecutive years and Bank Of The Ozarks has increased its dividend for 7 consecutive years.

Volatility & Risk

Guaranty Bancorp has a beta of 0.81, suggesting that its share price is 19% less 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.

Summary

Bank Of The Ozarks beats Guaranty Bancorp on 13 of the 18 factors compared between the two stocks.

Guaranty Bancorp Company Profile

Guaranty Bancorp operates as the bank holding company for Guaranty Bank and Trust Company that provides various banking and other financial services to consumers, and small to medium-sized businesses. The company accepts deposit products, such as demand, interest-bearing demand, NOW, money market, IRA, and time deposits, and savings accounts, as well as certificates of deposit. It also offers loan products, including commercial, commercial and residential real estate, construction, and small business administration loans, as well as installment loans to individuals and other consumer loans that include overdraft protection, lines of credit, and other consumer loans. In addition, the company provides wealth management services comprising private banking, investment management, and trust services. As of December 31, 2017, it operated 32 branches located in Colorado's Front Range consisting of the Denver metropolitan area; and an investment management firms. The company was formerly known as Centennial Bank Holdings, Inc. and changed its name to Guaranty Bancorp in 2008. Guaranty Bancorp was incorporated in 2004 and is headquartered in Denver, Colorado.

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.

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