Comparing Fidelity D&D Bancorp (NASDAQ:FDBC) and Bank OZK (NASDAQ:OZK)

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

Analyst Recommendations

This is a breakdown of current recommendations for Bank OZK and Fidelity D&D Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank OZK	2	3	5	0	2.30
Fidelity D&D Bancorp	0	1	0	0	2.00

Bank OZK presently has a consensus price target of $58.75, indicating a potential upside of 24.31%. Given Bank OZK’s stronger consensus rating and higher possible upside, research analysts clearly believe Bank OZK is more favorable than Fidelity D&D Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank OZK	25.81%	13.00%	1.80%
Fidelity D&D Bancorp	19.03%	12.10%	0.97%

Insider & Institutional Ownership

86.2% of Bank OZK shares are owned by institutional investors. Comparatively, 20.0% of Fidelity D&D Bancorp shares are owned by institutional investors. 6.7% of Bank OZK shares are owned by insiders. Comparatively, 21.0% of Fidelity D&D Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Bank OZK pays an annual dividend of $1.80 per share and has a dividend yield of 3.8%. Fidelity D&D Bancorp pays an annual dividend of $1.72 per share and has a dividend yield of 4.0%. Bank OZK pays out 29.0% of its earnings in the form of a dividend. Fidelity D&D Bancorp pays out 38.1% 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 increased its dividend for 29 consecutive years and Fidelity D&D Bancorp has increased its dividend for 10 consecutive years.

Valuation and Earnings

This table compares Bank OZK and Fidelity D&D Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank OZK	$2.77 billion	1.91	$716.46 million	$6.20	7.62
Fidelity D&D Bancorp	$88.21 million	2.83	$20.79 million	$4.51	9.59

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

Volatility and Risk

Bank OZK has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Fidelity D&D Bancorp has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Summary

Bank OZK beats Fidelity D&D Bancorp on 12 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 Fidelity D&D Bancorp

Fidelity D&D Bancorp, Inc. is a holding company, which engages in the provision of commercial banking services. It operates through the following segments: Commercial and Industrial, Commercial Real Estate, Consumer, and Residential Real Estate. The Commercial and Industrial segment refers to identified historic and/or the projected cash flows of the borrower and secondarily to the underlying collateral provided by the borrower. The Commercial Real Estate segment offers finances purchase of real estate, refinance existing obligations, and/or to provide capital. The Consumer segment includes home equity installment loans and lines of credit. The Residential Real Estate segment operates as a secured first lien position of the borrower’s residential real estate. The company was founded in 1902 and is headquartered in Dunmore, PA.