Bank OZK (NASDAQ:OZK – Get Free Report) and Freedom Financial (OTCMKTS:FDVA – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Volatility & Risk
Bank OZK has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Freedom Financial has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Bank OZK and Freedom Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank OZK | 1 | 4 | 5 | 0 | 2.40 |
| Freedom Financial | 0 | 0 | 0 | 0 | 0.00 |
Insider & Institutional Ownership
86.2% of Bank OZK shares are owned by institutional investors. 6.7% of Bank OZK shares are owned by 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.
Valuation & Earnings
This table compares Bank OZK and Freedom Financial”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank OZK | $2.77 billion | 1.88 | $716.46 million | $6.20 | 7.41 |
| Freedom Financial | $66.41 million | 1.23 | $4.71 million | $0.60 | 19.17 |
Bank OZK has higher revenue and earnings than Freedom Financial. Bank OZK is trading at a lower price-to-earnings ratio than Freedom Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bank OZK and Freedom Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bank OZK | 25.81% | 13.00% | 1.80% |
| Freedom Financial | 6.54% | 5.21% | 0.40% |
Summary
Bank OZK beats Freedom Financial on 13 of the 14 factors compared between the two stocks.
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.
About Freedom Financial
Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.
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