Chesapeake Financial Shares (OTCMKTS:CPKF) versus BOK Financial (NASDAQ:BOKF) Critical Survey

BOK Financial (NASDAQ:BOKF) and Chesapeake Financial Shares (OTCMKTS:CPKF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BOK Financial and Chesapeake Financial Shares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BOK Financial	0	9	1	0	2.10
Chesapeake Financial Shares	0	0	0	0	N/A

BOK Financial presently has a consensus price target of $97.10, suggesting a potential upside of 5.25%. Given BOK Financial’s higher probable upside, equities analysts clearly believe BOK Financial is more favorable than Chesapeake Financial Shares.

Valuation and Earnings

This table compares BOK Financial and Chesapeake Financial Shares’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BOK Financial	$3.13 billion	1.90	$530.75 million	$6.86	13.45
Chesapeake Financial Shares	$82.72 million	0.96	$10.12 million	$1.95	8.59

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

Profitability

This table compares BOK Financial and Chesapeake Financial Shares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BOK Financial	13.93%	10.62%	1.06%
Chesapeake Financial Shares	10.68%	9.72%	0.64%

Institutional and Insider Ownership

34.4% of BOK Financial shares are held by institutional investors. Comparatively, 3.7% of Chesapeake Financial Shares shares are held by institutional investors. 56.9% of BOK Financial shares are held by insiders. Comparatively, 39.5% of Chesapeake Financial Shares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

BOK Financial pays an annual dividend of $2.20 per share and has a dividend yield of 2.4%. Chesapeake Financial Shares pays an annual dividend of $0.62 per share and has a dividend yield of 3.7%. BOK Financial pays out 32.1% of its earnings in the form of a dividend. Chesapeake Financial Shares pays out 31.8% 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 19 consecutive years. Chesapeake Financial Shares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

BOK Financial has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Chesapeake Financial Shares has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Summary

BOK Financial beats Chesapeake Financial Shares on 14 of the 16 factors compared between the two stocks.

About BOK Financial

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.

About Chesapeake Financial Shares

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.