Financial Analysis: Bank OZK (NASDAQ:OZK) vs. City Bank (OTCMKTS:CTBK)

Bank OZK (NASDAQ:OZKGet Rating) and City Bank (OTCMKTS:CTBKGet Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Profitability

This table compares Bank OZK and City Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank OZK 48.78% 12.80% 2.16%
City Bank N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings for Bank OZK and City Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank OZK 0 1 3 0 2.75
City Bank 0 1 0 0 2.00

Bank OZK presently has a consensus target price of $55.00, indicating a potential upside of 37.26%. Given Bank OZK’s stronger consensus rating and higher possible upside, equities analysts plainly believe Bank OZK is more favorable than City Bank.

Earnings and Valuation

This table compares Bank OZK and City Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank OZK $1.19 billion 4.24 $579.00 million $4.47 8.96
City Bank N/A N/A N/A N/A N/A

Bank OZK has higher revenue and earnings than City Bank.

Institutional & Insider Ownership

79.8% of Bank OZK shares are owned by institutional investors. 6.7% of Bank OZK shares are owned by company insiders. Comparatively, 37.5% of City Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Bank OZK has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, City Bank has a beta of 2.97, suggesting that its share price is 197% more volatile than the S&P 500.

Summary

Bank OZK beats City Bank on 8 of the 10 factors compared between the two stocks.

About Bank OZK (Get Rating)

Bank OZK provides various retail and commercial banking services. It accepts various deposit products, including non-interest-bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. The company also offers real estate, consumer and business purpose, indirect recreational vehicle and marine, commercial and industrial, government guaranteed, agricultural, small business, homebuilder, and affordable housing loans; business aviation and subscription financing services; and mortgage and other lending products. In addition, it provides trust and wealth services, such as personal, custodial, investment management, and retirement accounts, as well as corporate trust services comprising trustee, paying and registered transfer agent, and other incidental services. Further, the company offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, and merchant and commercial card services, as well as zero balance and investment sweep accounts. Additionally, it provides ATMs; telephone, online, and mobile banking services; debit and credit cards; safe deposit boxes; and other products and services, as well as processes merchant debit and credit card transactions. As of December 31, 2021, it operated approximately 240 offices in Arkansas, Georgia, Florida, North Carolina, Texas, 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.

About City Bank (Get Rating)

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.

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