BOK Financial (NASDAQ:BOKF) vs. First BanCorp. (NYSE:FBP) Critical Review

First BanCorp. (NYSE:FBP – Get Free Report) and BOK Financial (NASDAQ:BOKF – Get Free Report) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Dividends

First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. BOK Financial pays an annual dividend of $2.52 per share and has a dividend yield of 1.9%. First BanCorp. pays out 33.8% of its earnings in the form of a dividend. BOK Financial pays out 22.8% 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. First BanCorp. has increased its dividend for 6 consecutive years and BOK Financial has increased its dividend for 20 consecutive years.

Profitability

This table compares First BanCorp. and BOK Financial’s net margins, return on equity and return on assets.

Insider and Institutional Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 34.4% of BOK Financial shares are owned by institutional investors. 1.9% of First BanCorp. shares are owned by company insiders. Comparatively, 63.5% of BOK Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares First BanCorp. and BOK Financial”s gross revenue, earnings per share and valuation.

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

Volatility and Risk

First BanCorp. has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, BOK Financial has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for First BanCorp. and BOK Financial, as provided by MarketBeat.

First BanCorp. presently has a consensus target price of $29.86, indicating a potential upside of 12.35%. BOK Financial has a consensus target price of $143.27, indicating a potential upside of 8.38%. Given First BanCorp.’s stronger consensus rating and higher probable upside, analysts plainly believe First BanCorp. is more favorable than BOK Financial.

Summary

First BanCorp. beats BOK Financial on 11 of the 18 factors compared between the two stocks.

About First BanCorp.

(Get Free Report)

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.

About BOK Financial

(Get Free Report)

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, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, 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, manufacturing, wholesale/retail, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and automated teller machine, call center, and Internet and mobile banking services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

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