Head to Head Analysis: Bank OZK (NASDAQ:OZK) versus NSTS Bancorp (NASDAQ:NSTS)

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

Risk & Volatility

NSTS Bancorp has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Bank OZK has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NSTS Bancorp	-6.91%	-1.13%	-0.32%
Bank OZK	25.83%	13.24%	1.84%

Valuation & Earnings

This table compares NSTS Bancorp and Bank OZK”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NSTS Bancorp	$12.24 million	5.26	-$790,000.00	($0.18)	-68.14
Bank OZK	$2.77 billion	1.97	$716.46 million	$6.16	7.79

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

Analyst Recommendations

This is a summary of current ratings and target prices for NSTS Bancorp and Bank OZK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NSTS Bancorp	0	0	0	0	0.00
Bank OZK	0	6	2	0	2.25

Bank OZK has a consensus price target of $52.8750, suggesting a potential upside of 10.23%. Given Bank OZK’s stronger consensus rating and higher possible upside, analysts plainly believe Bank OZK is more favorable than NSTS Bancorp.

Institutional & Insider Ownership

23.7% of NSTS Bancorp shares are owned by institutional investors. Comparatively, 86.2% of Bank OZK shares are owned by institutional investors. 6.2% of NSTS Bancorp shares are owned by company insiders. Comparatively, 6.7% of Bank OZK shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Bank OZK beats NSTS Bancorp on 13 of the 14 factors compared between the two stocks.

About NSTS Bancorp

NSTS Bancorp, Inc. operates as a savings and loan holding company for North Shore Trust and Savings that provides banking products and services in Illinois. The company offers interest-bearing and noninterest-bearing checking, money market, savings, and time deposit accounts; and one- to four-family residential mortgage, multi-family and commercial real estate mortgage, construction, home equity, and consumer loans. It operates through full-service banking offices in Lake County, Illinois; and one loan production office in Chicago. The company was founded in 1921 and is headquartered in Waukegan, Illinois.

About Bank OZK

Bank OZK provides various retail and commercial banking services for individuals and businesses in the United States. The company offers deposit services, including non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time and reciprocal deposits. It also provides trust and wealth services, such as personal trusts, custodial accounts, investment management accounts, and retirement accounts, as well as corporate trust services, including trustee, paying agent and registered transfer agent services, and other related services. In addition, 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, commercial card, and other services, as well as zero balance and investment sweep accounts. Further, it provides real estate, consumer, small business, indirect recreational vehicle and marine, equipment, agricultural, commercial and industrial, government guaranteed, lines of credit, homebuilder, and affordable housing loans; lender and structured, business aviation, and subscription financing services; and mortgage and other lending products. Additionally, the company offers ATMs; telephone, online, and mobile banking services; credit and debit cards; safe deposit boxes; and other products and services. 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.