Bank OZK (NASDAQ:OZK – Get Free Report) and Columbia Banking System (NASDAQ:COLB – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Risk & Volatility
Bank OZK has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Bank OZK and Columbia Banking System, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank OZK | 1 | 7 | 1 | 0 | 2.00 |
| Columbia Banking System | 0 | 8 | 4 | 0 | 2.33 |
Valuation and Earnings
This table compares Bank OZK and Columbia Banking System”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank OZK | $1.66 billion | 2.99 | $716.46 million | $6.14 | 7.12 |
| Columbia Banking System | $1.93 billion | 2.69 | $533.67 million | $2.54 | 9.74 |
Bank OZK has higher earnings, but lower revenue than Columbia Banking System. Bank OZK is trading at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
86.2% of Bank OZK shares are held by institutional investors. Comparatively, 92.5% of Columbia Banking System shares are held by institutional investors. 6.7% of Bank OZK shares are held by insiders. Comparatively, 0.6% of Columbia Banking System shares are held by 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.
Profitability
This table compares Bank OZK and Columbia Banking System’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bank OZK | 25.83% | 13.90% | 1.93% |
| Columbia Banking System | 17.99% | 11.21% | 1.10% |
Dividends
Bank OZK pays an annual dividend of $1.68 per share and has a dividend yield of 3.8%. Columbia Banking System pays an annual dividend of $1.44 per share and has a dividend yield of 5.8%. Bank OZK pays out 27.4% of its earnings in the form of a dividend. Columbia Banking System pays out 56.7% 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. Bank OZK has raised its dividend for 29 consecutive years.
Summary
Bank OZK beats Columbia Banking System on 10 of the 17 factors compared between the two stocks.
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.
About Columbia Banking System
Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.
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