German American Bancorp. (GABC) and Bank Ozk (OZK) Head-To-Head Contrast

German American Bancorp. (NASDAQ:GABC) and Bank Ozk (NASDAQ:OZK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for German American Bancorp. and Bank Ozk, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
German American Bancorp. 0 0 1 0 3.00
Bank Ozk 0 8 3 0 2.27

German American Bancorp. currently has a consensus target price of $31.00, indicating a potential upside of 9.31%. Bank Ozk has a consensus target price of $32.50, indicating a potential upside of 8.41%. Given German American Bancorp.’s stronger consensus rating and higher possible upside, equities research analysts clearly believe German American Bancorp. is more favorable than Bank Ozk.

Dividends

German American Bancorp. pays an annual dividend of $0.68 per share and has a dividend yield of 2.4%. Bank Ozk pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. German American Bancorp. pays out 31.8% of its earnings in the form of a dividend. Bank Ozk pays out 28.4% 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. German American Bancorp. has raised its dividend for 6 consecutive years. Bank Ozk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

38.5% of German American Bancorp. shares are held by institutional investors. Comparatively, 85.8% of Bank Ozk shares are held by institutional investors. 7.9% of German American Bancorp. shares are held by insiders. Comparatively, 6.7% of Bank Ozk 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.

Earnings & Valuation

This table compares German American Bancorp. and Bank Ozk’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
German American Bancorp. $170.82 million 4.15 $46.53 million $2.14 13.25
Bank Ozk $1.21 billion 3.18 $417.11 million $3.24 9.25

Bank Ozk has higher revenue and earnings than German American Bancorp.. Bank Ozk is trading at a lower price-to-earnings ratio than German American Bancorp., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares German American Bancorp. and Bank Ozk’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
German American Bancorp. 26.91% 12.37% 1.43%
Bank Ozk 33.40% 11.11% 1.85%

Risk and Volatility

German American Bancorp. has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Bank Ozk has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Summary

Bank Ozk beats German American Bancorp. on 10 of the 17 factors compared between the two stocks.

German American Bancorp. Company Profile

German American Bancorp, Inc. operates as the bank holding company for German American Bancorp that provides retail and commercial banking services. The company operates through three segments: Core Banking, Trust and Investment Advisory Services, and Insurance Operations. The Core Banking segment accepts various deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Trust and Investment Advisory Services segment provides trust, investment advisory, and brokerage services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. As of February 13, 2018, the company operated 53 banking offices in 19 contiguous southern Indiana counties and 1 northern Kentucky County. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.

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.

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