Investors are keenly analyzing the performance of two prominent financial institutions: BOK Financial (NASDAQ: BOKF) and Farmers & Merchants Bancorp (OTCMKTS: FMCB). This comparison highlights key metrics including dividends, earnings, valuation, and institutional ownership, helping stakeholders determine which company may offer a better investment opportunity.
Dividend Performance
When it comes to dividends, Farmers & Merchants Bancorp has an annual payout of $20.20 per share, translating to a dividend yield of 1.9%. In contrast, BOK Financial offers an annual dividend of $2.52 per share with a higher yield of 2.2%. Notably, Farmers & Merchants Bancorp distributes 15.4% of its earnings as dividends, while BOK Financial allocates 30.0% of its earnings for this purpose. Both companies maintain healthy payout ratios, indicating a robust capacity to meet dividend obligations in the foreseeable future. BOK Financial stands out with a remarkable record of increasing its dividend for 20 consecutive years, positioning it as a more attractive option for dividend-seeking investors.
Valuation and Earnings Comparison
A closer look at earnings reveals that BOK Financial outperforms Farmers & Merchants Bancorp in revenue and earnings per share (EPS). Despite this, Farmers & Merchants Bancorp is currently trading at a lower price-to-earnings ratio, indicating it may be the more affordable option between the two. This valuation aspect could attract investors seeking a cost-effective entry point.
Institutional ownership is another critical metric to consider. Approximately 5.6% of Farmers & Merchants Bancorp shares are held by institutional investors, compared to 34.4% for BOK Financial. Insider ownership also reflects investor confidence, with 8.5% of Farmers & Merchants Bancorp shares owned by insiders, while a significant 56.9% of BOK Financial shares are held by insiders. This strong institutional backing often signals confidence in long-term performance.
Profitability and Risk Assessment
In terms of profitability, BOK Financial shows superior net margins, return on equity, and return on assets compared to its counterpart. This suggests that BOK Financial is more efficient in generating profits relative to its revenue and equity.
When evaluating stock volatility and risk, Farmers & Merchants Bancorp reports a beta of 0.23, indicating its stock price is 77% less volatile than the S&P 500. On the other hand, BOK Financial has a beta of 0.93, suggesting it is only 7% less volatile than the market. Investors seeking lower risk and volatility may find Farmers & Merchants Bancorp appealing.
In summary, BOK Financial outperforms Farmers & Merchants Bancorp across 12 out of 17 evaluated factors. This comprehensive analysis provides a clearer picture for investors weighing their options in the financial sector.
Company Overviews
Farmers & Merchants Bancorp, founded in 1916, serves as the bank holding company for Farmers & Merchants Bank of Central California. It offers a range of banking services, including deposit products and a variety of lending options. The bank’s offerings also extend to specialized services such as electronic funds transfers and investment products.
BOK Financial Corporation, established in 1910, operates as a financial holding company for BOKF, NA. It provides various financial products and services across several states including Oklahoma, Texas, and New Mexico. BOK Financial is divided into three segments: Commercial Banking, Consumer Banking, and Wealth Management, catering to a diverse clientele from small businesses to larger commercial operations.
As financial markets continue to evolve, both BOK Financial and Farmers & Merchants Bancorp present unique opportunities for investors, each with its strengths and potential risks.
