Comparing City (NASDAQ:CHCO) & BOK Financial (NASDAQ:BOKF)

City (NASDAQ:CHCOGet Rating) and BOK Financial (NASDAQ:BOKFGet Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for City and BOK Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
City 0 0 0 0 N/A
BOK Financial 0 5 1 0 2.17

BOK Financial has a consensus target price of $99.14, suggesting a potential upside of 15.79%. Given BOK Financial’s higher possible upside, analysts clearly believe BOK Financial is more favorable than City.

Volatility & Risk

City has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, BOK Financial has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Earnings & Valuation

This table compares City and BOK Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
City $235.11 million 5.29 $88.08 million $5.83 14.25
BOK Financial $1.85 billion 3.15 $618.12 million $7.76 11.03

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

Dividends

City pays an annual dividend of $2.40 per share and has a dividend yield of 2.9%. BOK Financial pays an annual dividend of $2.12 per share and has a dividend yield of 2.5%. City pays out 41.2% of its earnings in the form of a dividend. BOK Financial pays out 27.3% 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. City has increased its dividend for 9 consecutive years and BOK Financial has increased its dividend for 17 consecutive years.

Profitability

This table compares City and BOK Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
City 38.11% 13.31% 1.50%
BOK Financial 29.37% 10.19% 1.12%

Insider and Institutional Ownership

64.1% of City shares are held by institutional investors. Comparatively, 39.1% of BOK Financial shares are held by institutional investors. 2.6% of City shares are held by insiders. Comparatively, 56.9% of BOK Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

BOK Financial beats City on 9 of the 16 factors compared between the two stocks.

About City (Get Rating)

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of residence; first-priority home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, interactive voice response systems, and credit and debit card services. The company operates through a network of 94 branches and 905 full-time equivalent associates in West Virginia, Virginia, Kentucky, and Ohio. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

About BOK Financial (Get Rating)

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment provides lending and deposit services to small business customers through consumer branch network; and engages in the mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, manufacturing, wholesale/retail, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other enhancements to real estate and property held by borrowers for investment purposes; and residential mortgage and personal loans. Further, the company provides automated teller machine (ATM), call center, and Internet and mobile banking services. As of December 31, 2021, it operated 2,593 TransFund ATM locations. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

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