BOK Financial (NASDAQ:BOKF – Get Free Report) and U.S. Bancorp (NYSE:USB – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Insider & Institutional Ownership
34.4% of BOK Financial shares are held by institutional investors. Comparatively, 77.6% of U.S. Bancorp shares are held by institutional investors. 56.9% of BOK Financial shares are held by insiders. Comparatively, 0.2% of U.S. Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares BOK Financial and U.S. Bancorp’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BOK Financial | $3.13 billion | 1.90 | $530.75 million | $6.86 | 13.42 |
| U.S. Bancorp | $40.62 billion | 1.56 | $5.43 billion | $3.02 | 13.42 |
U.S. Bancorp has higher revenue and earnings than BOK Financial. BOK Financial is trading at a lower price-to-earnings ratio than U.S. Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BOK Financial and U.S. Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BOK Financial | 13.93% | 10.52% | 1.06% |
| U.S. Bancorp | 12.13% | 13.93% | 0.99% |
Dividends
BOK Financial pays an annual dividend of $2.20 per share and has a dividend yield of 2.4%. U.S. Bancorp pays an annual dividend of $1.96 per share and has a dividend yield of 4.8%. BOK Financial pays out 32.1% of its earnings in the form of a dividend. U.S. Bancorp pays out 64.9% 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. BOK Financial has increased its dividend for 19 consecutive years and U.S. Bancorp has increased its dividend for 13 consecutive years.
Risk & Volatility
BOK Financial has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, U.S. Bancorp has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for BOK Financial and U.S. Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BOK Financial | 0 | 9 | 1 | 0 | 2.10 |
| U.S. Bancorp | 0 | 14 | 9 | 0 | 2.39 |
BOK Financial presently has a consensus target price of $97.10, suggesting a potential upside of 5.49%. U.S. Bancorp has a consensus target price of $46.02, suggesting a potential upside of 13.54%. Given U.S. Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe U.S. Bancorp is more favorable than BOK Financial.
Summary
U.S. Bancorp beats BOK Financial on 9 of the 17 factors compared between the two stocks.
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.
About U.S. Bancorp
U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers. In addition, the company offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. Further, it provides investment and insurance products to its customers principally within its domestic markets, as well as fund administration services to mutual and other funds. Additionally, the company provides corporate and purchasing card, and corporate trust services. Furthermore, it offers trust and investment management, merchant and ATM processing, mortgage banking, insurance, and brokerage and leasing services. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.
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Source: defenseworld.net
