BOK Financial (NASDAQ:BOKF) vs. Red River Bancshares (NASDAQ:RRBI) Head to Head Contrast

Red River Bancshares (NASDAQ:RRBI) and BOK Financial (NASDAQ:BOKF) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Red River Bancshares and BOK Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	1	2	0	2.67
BOK Financial	0	7	4	0	2.36

Red River Bancshares currently has a consensus price target of $67.00, suggesting a potential downside of 11.48%. BOK Financial has a consensus price target of $121.36, suggesting a potential downside of 6.49%. Given BOK Financial’s higher possible upside, analysts plainly believe BOK Financial is more favorable than Red River Bancshares.

Dividends

Red River Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. BOK Financial pays an annual dividend of $2.52 per share and has a dividend yield of 1.9%. Red River Bancshares pays out 10.0% of its earnings in the form of a dividend. BOK Financial pays out 27.5% 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. Red River Bancshares has increased its dividend for 3 consecutive years and BOK Financial has increased its dividend for 20 consecutive years. BOK Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$157.67 million	3.16	$34.24 million	$6.03	12.55
BOK Financial	$3.38 billion	2.43	$577.99 million	$9.16	14.17

BOK Financial has higher revenue and earnings than Red River Bancshares. Red River 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.

Risk & Volatility

Red River Bancshares has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, BOK Financial has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

27.6% of Red River Bancshares shares are held by institutional investors. Comparatively, 34.4% of BOK Financial shares are held by institutional investors. 15.9% of Red River Bancshares shares are held by insiders. Comparatively, 60.1% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	24.44%	12.14%	1.28%
BOK Financial	17.10%	9.37%	1.09%

Summary

BOK Financial beats Red River Bancshares on 11 of the 17 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

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.