Reviewing KeyCorp (KEY) and Its Rivals

KeyCorp (NYSE: KEY) is one of 331 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare KeyCorp to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Dividends

KeyCorp pays an annual dividend of $0.38 per share and has a dividend yield of 2.1%. KeyCorp pays out 33.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.7% of their earnings in the form of a dividend. KeyCorp has increased its dividend for 6 consecutive years. KeyCorp is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk and Volatility

KeyCorp has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, KeyCorp’s rivals have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Profitability

This table compares KeyCorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KeyCorp 18.69% 10.35% 1.07%
KeyCorp Competitors 18.83% 8.83% 0.94%

Analyst Recommendations

This is a breakdown of current ratings and target prices for KeyCorp and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KeyCorp 2 10 12 0 2.42
KeyCorp Competitors 2094 8277 8377 324 2.36

KeyCorp currently has a consensus target price of $20.36, indicating a potential upside of 11.57%. As a group, “Banks” companies have a potential downside of 7.79%. Given KeyCorp’s stronger consensus rating and higher probable upside, analysts clearly believe KeyCorp is more favorable than its rivals.

Valuation and Earnings

This table compares KeyCorp and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
KeyCorp $5.69 billion N/A 16.01
KeyCorp Competitors N/A N/A 19.24

KeyCorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

81.2% of KeyCorp shares are held by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are held by institutional investors. 0.7% of KeyCorp shares are held by company insiders. Comparatively, 10.5% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

KeyCorp beats its rivals on 10 of the 14 factors compared.

About KeyCorp

KeyCorp is a bank holding company. The Company is a bank-based financial services company. The Company operates through its subsidiary, KeyBank National Association (KeyBank), which is engaged in providing banking services. Through KeyBank and other subsidiaries, it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate and institutional clients. Its segments include Key Community Bank and Key Corporate Bank. Key Community Bank serves individuals and small to mid-sized businesses by offering a range of deposit, investment, lending, credit card, and personalized wealth management products and business advisory services. Key Corporate Bank is a full-service corporate and investment bank focused on serving the needs of middle market clients in industry sectors, which include consumer, energy, healthcare, industrial, public sector, real estate and technology.

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