Five Star Bancorp (NASDAQ:FSBC – Get Free Report) and Bank OZK (NASDAQ:OZK – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Profitability
This table compares Five Star Bancorp and Bank OZK’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Five Star Bancorp | 21.40% | 12.89% | 1.25% |
| Bank OZK | 25.83% | 13.90% | 1.93% |
Insider & Institutional Ownership
46.9% of Five Star Bancorp shares are held by institutional investors. Comparatively, 86.2% of Bank OZK shares are held by institutional investors. 25.6% of Five Star Bancorp shares are held by company insiders. Comparatively, 6.7% of Bank OZK shares are held by company 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Five Star Bancorp | 0 | 1 | 3 | 0 | 2.75 |
| Bank OZK | 1 | 7 | 1 | 0 | 2.00 |
Five Star Bancorp presently has a consensus target price of $36.38, indicating a potential upside of 30.99%. Bank OZK has a consensus target price of $50.38, indicating a potential upside of 15.20%. Given Five Star Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Five Star Bancorp is more favorable than Bank OZK.
Valuation & Earnings
This table compares Five Star Bancorp and Bank OZK”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Five Star Bancorp | $124.96 million | 4.74 | $45.67 million | $2.28 | 12.18 |
| Bank OZK | $1.66 billion | 2.99 | $716.46 million | $6.14 | 7.12 |
Bank OZK has higher revenue and earnings than Five Star Bancorp. Bank OZK is trading at a lower price-to-earnings ratio than Five Star Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Five Star Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Bank OZK pays an annual dividend of $1.68 per share and has a dividend yield of 3.8%. Five Star Bancorp pays out 35.1% of its earnings in the form of a dividend. Bank OZK pays out 27.4% 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. Bank OZK is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Five Star Bancorp has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Bank OZK has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Summary
Bank OZK beats Five Star Bancorp on 11 of the 17 factors compared between the two stocks.
About Five Star Bancorp
Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals in Northern California. It accepts various deposits, such as money market accounts, noninterest-bearing and interest checking accounts, savings accounts, term certificate accounts, and time deposits. The company also offers loan products, including commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans, as well as operating lines of credit. In addition, it provides debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.
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.
Receive News & Ratings for Five Star Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Five Star Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
