Head to Head Contrast: BOK Financial Corporation (BOKF) versus Heartland Financial USA (HTLF)

BOK Financial Corporation (NASDAQ: BOKF) and Heartland Financial USA (NASDAQ:HTLF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitabiliy and analyst recommendations.

Institutional and Insider Ownership

33.8% of BOK Financial Corporation shares are owned by institutional investors. Comparatively, 45.6% of Heartland Financial USA shares are owned by institutional investors. 62.0% of BOK Financial Corporation shares are owned by company insiders. Comparatively, 9.0% of Heartland Financial USA shares are owned 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.

Dividends

BOK Financial Corporation pays an annual dividend of $1.76 per share and has a dividend yield of 2.1%. Heartland Financial USA pays an annual dividend of $0.44 per share and has a dividend yield of 0.9%. BOK Financial Corporation pays out 41.5% of its earnings in the form of a dividend. Heartland Financial USA pays out 14.3% 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 Corporation has raised its dividend for 12 consecutive years. BOK Financial Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for BOK Financial Corporation and Heartland Financial USA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BOK Financial Corporation 0 9 2 0 2.18
Heartland Financial USA 0 3 0 0 2.00

BOK Financial Corporation presently has a consensus target price of $85.00, indicating a potential upside of 0.27%. Heartland Financial USA has a consensus target price of $44.00, indicating a potential downside of 6.38%. Given BOK Financial Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe BOK Financial Corporation is more favorable than Heartland Financial USA.

Earnings & Valuation

This table compares BOK Financial Corporation and Heartland Financial USA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BOK Financial Corporation $1.42 billion 3.90 $277.33 million $4.24 19.99
Heartland Financial USA $389.01 million 3.22 $81.89 million $3.07 15.31

BOK Financial Corporation has higher revenue and earnings than Heartland Financial USA. Heartland Financial USA is trading at a lower price-to-earnings ratio than BOK Financial Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BOK Financial Corporation and Heartland Financial USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BOK Financial Corporation 17.85% 8.24% 0.86%
Heartland Financial USA 17.96% 10.78% 0.95%

Risk and Volatility

BOK Financial Corporation has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Heartland Financial USA has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Summary

BOK Financial Corporation beats Heartland Financial USA on 12 of the 17 factors compared between the two stocks.

About BOK Financial Corporation

BOK Financial Corporation is a financial holding company. The Company offers full service banking in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona and Kansas/Missouri. The Company’s segments include Commercial Banking, Consumer Banking, Wealth Management, and Funds Management and Other. The Commercial Banking segment includes lending, treasury and cash management services, and customer risk management products for small businesses, middle market and commercial customers. The Commercial Banking segment also includes the TransFund Electronic Funds Network. The Consumer Banking segment includes retail lending and deposit services, lending and deposit services to small business customers served through the retail branch network and all mortgage banking activities. The Wealth Management segment provides fiduciary services, private bank services and investment advisory services in all markets.

About Heartland Financial USA

Heartland Financial USA, Inc. (Heartland) is a multi-bank holding company. The Company’s segments include community and other banking, and retail mortgage banking. Its community and other banking segment is engaged in making loans to, and generating deposits from, individuals and businesses in the markets where Heartland has banks. Its retail mortgage banking segment is engaged in the origination of residential loans and subsequent sale of those loans to investors. The Company conducts its community banking business through independently chartered community banks (collectively, the Bank Subsidiaries). Its loans include commercial, commercial real estate and consumer loans. Its securities portfolio consists of United States Government corporations and agencies, mortgage-backed securities and other securities. Its deposit products include checking and other demand deposit accounts, negotiable order of withdrawal accounts, certificates of deposit and other time deposits.

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