Prosperity Bancshares (NYSE:PB) vs. BOK Financial (NASDAQ:BOKF) Head to Head Contrast

BOK Financial (NASDAQ:BOKF) and Prosperity Bancshares (NYSE:PB) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Dividends

BOK Financial pays an annual dividend of $2.52 per share and has a dividend yield of 2.2%. Prosperity Bancshares pays an annual dividend of $2.32 per share and has a dividend yield of 3.3%. BOK Financial pays out 30.0% of its earnings in the form of a dividend. Prosperity Bancshares pays out 41.4% 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. BOK Financial has increased its dividend for 20 consecutive years and Prosperity Bancshares has increased its dividend for 27 consecutive years. Prosperity Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

BOK Financial has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Prosperity Bancshares has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Earnings & Valuation

This table compares BOK Financial and Prosperity Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BOK Financial	$3.48 billion	2.11	$523.57 million	$8.39	13.82
Prosperity Bancshares	$1.79 billion	3.75	$479.39 million	$5.61	12.59

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

Analyst Ratings

This is a summary of current ratings and target prices for BOK Financial and Prosperity Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BOK Financial	0	6	4	0	2.40
Prosperity Bancshares	0	6	10	0	2.63

BOK Financial currently has a consensus price target of $115.55, indicating a potential downside of 0.37%. Prosperity Bancshares has a consensus price target of $80.21, indicating a potential upside of 13.53%. Given Prosperity Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Prosperity Bancshares is more favorable than BOK Financial.

Profitability

This table compares BOK Financial and Prosperity Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BOK Financial	15.98%	9.24%	1.07%
Prosperity Bancshares	30.28%	7.06%	1.37%

Insider and Institutional Ownership

34.4% of BOK Financial shares are held by institutional investors. Comparatively, 80.7% of Prosperity Bancshares shares are held by institutional investors. 56.9% of BOK Financial shares are held by insiders. Comparatively, 4.2% of Prosperity Bancshares 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

Prosperity Bancshares beats BOK Financial on 9 of the 17 factors compared between the two stocks.

About BOK Financial

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 engages in the provision of retail lending and deposit services to small business customers through retail branch network; and 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 improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and automated teller machine, call center, and Internet and mobile banking services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

About Prosperity Bancshares

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, Texas.