Bank OZK (NASDAQ:OZK – Get Free Report) and First Bancorp, Inc (ME) (NASDAQ:FNLC – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.
Institutional & Insider Ownership
86.2% of Bank OZK shares are held by institutional investors. Comparatively, 40.4% of First Bancorp, Inc (ME) shares are held by institutional investors. 6.7% of Bank OZK shares are held by insiders. Comparatively, 5.1% of First Bancorp, Inc (ME) shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Bank OZK and First Bancorp, Inc (ME), as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank OZK | 1 | 5 | 5 | 0 | 2.36 |
| First Bancorp, Inc (ME) | 0 | 0 | 1 | 0 | 3.00 |
Dividends
Bank OZK pays an annual dividend of $1.84 per share and has a dividend yield of 4.1%. First Bancorp, Inc (ME) pays an annual dividend of $1.48 per share and has a dividend yield of 5.3%. Bank OZK pays out 29.8% of its earnings in the form of a dividend. First Bancorp, Inc (ME) pays out 48.2% 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 First Bancorp, Inc (ME) has increased its dividend for 6 consecutive years.
Volatility and Risk
Bank OZK has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, First Bancorp, Inc (ME) has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
Valuation and Earnings
This table compares Bank OZK and First Bancorp, Inc (ME)”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank OZK | $2.81 billion | 1.80 | $715.48 million | $6.17 | 7.31 |
| First Bancorp, Inc (ME) | $94.77 million | 3.28 | $34.39 million | $3.07 | 9.03 |
Bank OZK has higher revenue and earnings than First Bancorp, Inc (ME). Bank OZK is trading at a lower price-to-earnings ratio than First Bancorp, Inc (ME), indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bank OZK and First Bancorp, Inc (ME)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bank OZK | 25.50% | 12.65% | 1.76% |
| First Bancorp, Inc (ME) | 19.36% | 12.90% | 1.08% |
Summary
Bank OZK beats First Bancorp, Inc (ME) 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 First Bancorp, Inc (ME)
The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individuals and businesses. It offers various deposit products, including demand, NOW, time, savings, money market, and certificates of deposit accounts. The company also provides commercial loans comprising commercial real estate owner occupied, such as mortgage loans to finance investments in real property such as retail space, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties; commercial real estate non-owner occupied loans; commercial construction to finance construction in a mix of owner- and nonowner occupied commercial real estate properties; and commercial and industrial loans, including revolving and term loan for financing working capital and/or capital investment. In addition, it offers commercial multifamily loans; residential real estate term and residential real estate construction loans; loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes; home equity revolving and term loans; and personal lines of credit and amortizing loans for various purposes, such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Further, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations and municipalities; and brokerage, annuity, and various insurance products, as well as payment processing services. It operates through full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.
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