Financial Contrast: ICICI Bank (NYSE:IBN) & Bank OZK (NASDAQ:OZK)

ICICI Bank (NYSE:IBN) and Bank OZK (NASDAQ:OZK) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for ICICI Bank and Bank OZK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICICI Bank	0	2	1	1	2.75
Bank OZK	3	5	3	0	2.00

Bank OZK has a consensus target price of $56.88, suggesting a potential upside of 15.46%. Given Bank OZK’s higher possible upside, analysts plainly believe Bank OZK is more favorable than ICICI Bank.

Earnings & Valuation

This table compares ICICI Bank and Bank OZK”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICICI Bank	$22.73 billion	4.66	$6.13 billion	$1.58	18.67
Bank OZK	$2.81 billion	1.96	$715.48 million	$6.05	8.14

ICICI Bank has higher revenue and earnings than Bank OZK. Bank OZK is trading at a lower price-to-earnings ratio than ICICI Bank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ICICI Bank and Bank OZK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ICICI Bank	25.60%	13.81%	1.82%
Bank OZK	24.95%	11.87%	1.67%

Risk & Volatility

ICICI Bank has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Bank OZK has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

18.2% of ICICI Bank shares are owned by institutional investors. Comparatively, 86.2% of Bank OZK shares are owned by institutional investors. 6.7% of Bank OZK shares are owned 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.

Dividends

ICICI Bank pays an annual dividend of $0.21 per share and has a dividend yield of 0.7%. Bank OZK pays an annual dividend of $1.92 per share and has a dividend yield of 3.9%. ICICI Bank pays out 13.3% of its earnings in the form of a dividend. Bank OZK pays out 31.7% 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. Bank OZK has increased its dividend for 29 consecutive years. Bank OZK is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

ICICI Bank beats Bank OZK on 10 of the 18 factors compared between the two stocks.

About ICICI Bank

ICICI Bank Limited provides various banking products and services in India and internationally. It operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, and Others segments. The company offers savings, salary, pension, current, and other accounts; and time, fixed, recurring, and security deposits services. It also provides home, car, two-wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, including working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and overdraft facilities, as well as loans for new entities and card swipes; and credit, debit, prepaid, travel, forex, and corporate cards. In addition, the company offers pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, initial public offerings, and other online investment services; and agri and rural business, farmer finance, tractor loans, and micro banking services, as well as other services to agri corporates. Further, it provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial and investment banking, capital market, custodial, and institutional banking services; health, personal accident, fire, and motor insurance, as well as distributes general and life insurance products; and Internet, mobile, and phone banking services. Additionally, the company offers securities investment, broking, trading, and underwriting services; and merchant banking, trusteeship, housing finance, pension fund management, asset management, investment advisory, points of presence, and private equity/venture capital fund management services. ICICI Bank Limited was founded in 1955 and is headquartered in Mumbai, India.

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.