Critical Comparison: Fidelity Southern (NASDAQ:LION) versus Bank Of The Ozarks (OZRK)

Share on StockTwits

Bank Of The Ozarks (NASDAQ:OZRK) and Fidelity Southern (NASDAQ:LION) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares Bank Of The Ozarks and Fidelity Southern’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank Of The Ozarks 41.20% 12.05% 1.95%
Fidelity Southern 13.68% 9.04% 0.78%

Dividends

Bank Of The Ozarks pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. Fidelity Southern pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Bank Of The Ozarks pays out 27.0% of its earnings in the form of a dividend. Fidelity Southern pays out 36.6% 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 Of The Ozarks has increased its dividend for 7 consecutive years.

Insider and Institutional Ownership

90.9% of Bank Of The Ozarks shares are owned by institutional investors. Comparatively, 69.2% of Fidelity Southern shares are owned by institutional investors. 6.7% of Bank Of The Ozarks shares are owned by company insiders. Comparatively, 20.2% of Fidelity Southern shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Bank Of The Ozarks and Fidelity Southern’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank Of The Ozarks $1.06 billion 5.00 $421.89 million $2.96 13.93
Fidelity Southern $292.93 million 2.11 $39.79 million $1.31 17.33

Bank Of The Ozarks has higher revenue and earnings than Fidelity Southern. Bank Of The Ozarks is trading at a lower price-to-earnings ratio than Fidelity Southern, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Bank Of The Ozarks has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Fidelity Southern has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Bank Of The Ozarks and Fidelity Southern, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank Of The Ozarks 1 2 6 1 2.70
Fidelity Southern 0 1 0 0 2.00

Bank Of The Ozarks presently has a consensus target price of $55.44, suggesting a potential upside of 34.44%. Fidelity Southern has a consensus target price of $25.50, suggesting a potential upside of 12.33%. Given Bank Of The Ozarks’ stronger consensus rating and higher probable upside, research analysts plainly believe Bank Of The Ozarks is more favorable than Fidelity Southern.

Summary

Bank Of The Ozarks beats Fidelity Southern on 15 of the 18 factors compared between the two stocks.

About Bank Of The Ozarks

Bank of the Ozarks provides a range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The company accepts non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. Its loan products include real estate loans, such as loans secured by residential 1-4 family, non-farm/non-residential, agricultural, construction/land development, multifamily residential properties, and other land loans; small business and consumer loans; indirect consumer marine and RV loans; and government guaranteed loans comprising SBA and FSA guaranteed loans. The company's loan products also consist of commercial and industrial loans, and leases; and agricultural loans, including loans to businesses or individuals engages in the production of timber, poultry, livestock, or crops. In addition, it is involved in the provision of mortgage lending; treasury management services, such as wholesale lock box services; remote deposit capture services; and trust and wealth management services comprising financial planning, money management, custodial, and corporate trust services, as well as real estate development and corporate aircraft businesses. Further, the company provides real estate appraisals; ATMs; telephone banking; online and mobile banking services consisting of electronic bill pay and mobile deposits; debit, gift, and credit cards; safe deposit boxes; investment securities services; and other products and services, as well as processes merchant debit and credit card transactions. As of December 31, 2017, it operated through 253 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. Bank of the Ozarks was founded in 1981 and is headquartered in Little Rock, Arkansas.

About Fidelity Southern

Fidelity Southern Corporation operates as the holding company for Fidelity Bank that provides financial products and services primarily for individuals, and small and medium-sized businesses in the United States. The company accepts noninterest-bearing demand and interest-bearing demand accounts, including money market accounts and savings deposits; and time deposits. It also offers various loans, such as commercial and industrial loans, commercial real estate loans, indirect automobile loans, real estate construction loans, and real estate mortgage loans, as well as consumer loans, including automobile loans, residential mortgage and home equity loans, and secured and unsecured personal loans. In addition, the company offers Internet banking services comprising online bill pay and mobile deposit, and Internet cash management services; and wealth management services, including trust administration, investment management, financial and estate planning, and specialized lending and banking. Further, it provides cash management, remote deposit, and international trade services; and merchant services and credit cards. Additionally, the company operates an insurance agency that offers consumer credit related insurance products; and issues trust preferred securities. As of December 31, 2017, it owned 56 and leased 10 retail bank branches; and leased approximately 30 loan production offices. Fidelity Southern Corporation was founded in 1973 and is headquartered in Atlanta, Georgia.

Receive News & Ratings for Bank Of The Ozarks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bank Of The Ozarks and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply