Comparing Guaranty Federal Bancshares (NASDAQ:GFED) and Bank Of The Ozarks (NASDAQ:OZRK)

Bank Of The Ozarks (NASDAQ:OZRK) and Guaranty Federal Bancshares (NASDAQ:GFED) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Institutional and Insider Ownership

90.9% of Bank Of The Ozarks shares are held by institutional investors. Comparatively, 27.9% of Guaranty Federal Bancshares shares are held by institutional investors. 6.7% of Bank Of The Ozarks shares are held by company insiders. Comparatively, 29.5% of Guaranty Federal Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Bank Of The Ozarks and Guaranty Federal Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank Of The Ozarks N/A N/A N/A
Guaranty Federal Bancshares 20.09% 13.36% 1.12%

Dividends

Bank Of The Ozarks pays an annual dividend of $0.80 per share. Guaranty Federal Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%. Guaranty Federal Bancshares pays out 23.9% of its earnings in the form of a dividend. Bank Of The Ozarks has increased its dividend for 8 consecutive years and Guaranty Federal Bancshares has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bank Of The Ozarks and Guaranty Federal Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank Of The Ozarks 0 0 0 0 N/A
Guaranty Federal Bancshares 0 0 1 0 3.00

Guaranty Federal Bancshares has a consensus target price of $28.00, indicating a potential upside of 16.92%.

Valuation & Earnings

This table compares Bank Of The Ozarks and Guaranty Federal Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank Of The Ozarks N/A N/A N/A N/A N/A
Guaranty Federal Bancshares $49.80 million 2.14 $7.33 million $2.18 10.99

Guaranty Federal Bancshares has higher revenue and earnings than Bank Of The Ozarks.

Summary

Guaranty Federal Bancshares beats Bank Of The Ozarks on 7 of the 10 factors compared between the two stocks.

Bank Of The Ozarks Company Profile

Bank of the Ozarks provides a range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The company accepts non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. Its loan products include real estate loans, such as loans secured by residential 1-4 family, non-farm/non-residential, agricultural, construction/land development, multifamily residential properties, and other land loans; small business and consumer loans; indirect consumer marine and RV loans; and government guaranteed loans comprising SBA and FSA guaranteed loans. The company's loan products also consist of commercial and industrial loans, and leases; and agricultural loans, including loans to businesses or individuals engages in the production of timber, poultry, livestock, or crops. In addition, it is involved in the provision of mortgage lending; treasury management services, such as wholesale lock box services; remote deposit capture services; and trust and wealth management services comprising financial planning, money management, custodial, and corporate trust services, as well as real estate development and corporate aircraft businesses. Further, the company provides real estate appraisals; ATMs; telephone banking; online and mobile banking services consisting of electronic bill pay and mobile deposits; debit, gift, and credit cards; safe deposit boxes; investment securities services; and other products and services, as well as processes merchant debit and credit card transactions. As of December 31, 2017, it operated through 253 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. Bank of the Ozarks was founded in 1981 and is headquartered in Little Rock, Arkansas.

Guaranty Federal Bancshares Company Profile

Guaranty Federal Bancshares, Inc. operates as the bank holding company for Guaranty Bank that provides a range of banking and mortgage services to individual and corporate customers in southwest Missouri. The company's deposit products include checking accounts, money market accounts, savings accounts, fixed-term certificates of deposit, and individual retirement accounts, as well as demand deposits and NOW accounts. Its loan portfolio comprises commercial real estate loans, one-to four-family mortgage loans, multi-family residential mortgage loans, and construction loans; and consumer and other loans, such as loans secured by certificates of deposit, automobile loans, boat loans, and home equity loans, as well as business loans. As of January 23, 2019, the company had 16 full-service branches in Greene, Christian, Jasper, and Newton Counties and a loan production office in Webster County. Guaranty Federal Bancshares, Inc. was founded in 1913 and is based in Springfield, Missouri.

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