Wells Fargo & Co (NYSE:WFC) and BOK Financial (NASDAQ:BOKF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Institutional and Insider Ownership
75.5% of Wells Fargo & Co shares are owned by institutional investors. Comparatively, 40.0% of BOK Financial shares are owned by institutional investors. 0.1% of Wells Fargo & Co shares are owned by company insiders. Comparatively, 54.9% of BOK Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Wells Fargo & Co has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, BOK Financial has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
This table compares Wells Fargo & Co and BOK Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wells Fargo & Co||21.67%||13.01%||1.19%|
This is a summary of recent ratings and recommmendations for Wells Fargo & Co and BOK Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wells Fargo & Co||4||15||2||0||1.90|
Wells Fargo & Co currently has a consensus target price of $49.85, suggesting a potential downside of 8.32%. BOK Financial has a consensus target price of $88.86, suggesting a potential upside of 5.71%. Given BOK Financial’s stronger consensus rating and higher probable upside, analysts plainly believe BOK Financial is more favorable than Wells Fargo & Co.
Wells Fargo & Co pays an annual dividend of $2.04 per share and has a dividend yield of 3.8%. BOK Financial pays an annual dividend of $2.04 per share and has a dividend yield of 2.4%. Wells Fargo & Co pays out 46.6% of its earnings in the form of a dividend. BOK Financial pays out 30.1% 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.
Valuation & Earnings
This table compares Wells Fargo & Co and BOK Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wells Fargo & Co||$101.06 billion||2.28||$22.39 billion||$4.38||12.41|
|BOK Financial||$1.85 billion||3.23||$445.65 million||$6.78||12.40|
Wells Fargo & Co has higher revenue and earnings than BOK Financial. BOK Financial is trading at a lower price-to-earnings ratio than Wells Fargo & Co, indicating that it is currently the more affordable of the two stocks.
BOK Financial beats Wells Fargo & Co on 10 of the 16 factors compared between the two stocks.
Wells Fargo & Co Company Profile
Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. It operates through three segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The company also engages in the wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, computer and data processing, trust, investment advisory, mortgage-backed securities, and venture capital investment services. As of February 7, 2019, it operated through 7,800 locations, 13,000 ATMs, and the Internet and mobile banking, as well as has offices in 37 countries and territories. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.
BOK Financial Company Profile
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, and cash management services, as well as customer risk management products for small businesses, middle market, and larger commercial customers. This segment also operates TransFund electronic funds network. The Consumer Banking segment provides lending and deposit services to small business customers through the retail branch network; and mortgage banking services. The Wealth Management segment offers fiduciary, private banking, and investment advisory services; and brokerage and trading services, 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, wholesale/retail sector, and energy sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other enhancements to real estate and property held by borrowers for investment purposes; and residential mortgage, personal, and home equity loans. Further, the company provides automated teller machine (ATM), call center, and Internet and mobile banking services. As of December 31, 2018, it operated 2,426 TransFund ATM locations. BOK Financial Corporation was founded in 1910 and is headquartered in Tulsa, Oklahoma.
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