Head-To-Head Comparison: Carter Bankshares (NASDAQ:CARE) versus BOK Financial (NASDAQ:BOKF)

BOK Financial (NASDAQ:BOKF) and Carter Bankshares (NASDAQ:CARE) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Risk & Volatility

BOK Financial has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Carter Bankshares has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Valuation & Earnings

This table compares BOK Financial and Carter Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BOK Financial	$3.38 billion	2.36	$577.99 million	$11.03	11.88
Carter Bankshares	$254.63 million	2.52	$31.00 million	$5.92	4.94

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

Dividends

BOK Financial pays an annual dividend of $2.52 per share and has a dividend yield of 1.9%. Carter Bankshares pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. BOK Financial pays out 22.8% of its earnings in the form of a dividend. Carter Bankshares pays out 6.8% 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. BOK Financial has raised its dividend for 20 consecutive years. BOK Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares BOK Financial and Carter Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BOK Financial	19.53%	10.45%	1.17%
Carter Bankshares	37.19%	7.55%	0.76%

Institutional and Insider Ownership

34.4% of BOK Financial shares are held by institutional investors. Comparatively, 41.5% of Carter Bankshares shares are held by institutional investors. 63.5% of BOK Financial shares are held by insiders. Comparatively, 2.4% of Carter Bankshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for BOK Financial and Carter Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BOK Financial	1	10	2	0	2.08
Carter Bankshares	0	4	1	0	2.20

BOK Financial presently has a consensus price target of $143.27, suggesting a potential upside of 9.35%. Carter Bankshares has a consensus price target of $30.75, suggesting a potential upside of 5.18%. Given BOK Financial’s higher possible upside, analysts clearly believe BOK Financial is more favorable than Carter Bankshares.

Summary

BOK Financial beats Carter Bankshares on 12 of the 17 factors compared between the two stocks.

About BOK Financial

BOK Financial is a financial services holding company headquartered in Tulsa, Oklahoma. Its history traces to the founding of Exchange National Bank in Tulsa in 1910. The company operates through banking brands that include Bank of Oklahoma, Bank of Texas and Bank of Albuquerque. BOK Financial provides commercial and consumer banking, including lending, deposit accounts, treasury and cash-management services. It also offers wealth management, investment and brokerage services, mortgage lending, and specialized financing for industries such as energy.

About Carter Bankshares

Carter Bankshares, Inc. is the bank holding company for Carter Bank & Trust, a community bank headquartered in Martinsville, Virginia. The bank provides financial services to individuals, businesses and other organizations, with a focus on markets in Virginia and North Carolina. Its offerings include personal and business deposit accounts, commercial and consumer lending, residential mortgage services, and digital banking. Business customers can also access services such as cash management and other tools for managing day-to-day finances.