Valuing normal banks on the basis of their returns on tangible equity, tangible book value, and long-term returns on equity usually works pretty well. For better and for worse, Bank of the Ozarks (NASDAQ:OZRK) is not at all a "normal bank" and investors have to make their peace with a demanding valuation to take part in a very strong, very well-run bank growth story.
The growth side of Bank of the Ozarks looks fine. While the company is seeing more competition for lending, the bank's capabilities in specialty and complex real estate lending sets it apart. Bank of the Ozarks also has the option to expand its leasing operations and use its equity to expand its asset base....
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|