KeyCorp (NYSE: KEY) and Cape Bancorp (NASDAQ:CBNJ) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares KeyCorp and Cape Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KeyCorp||$5.39 billion||3.87||$791.00 million||$1.14||17.00|
KeyCorp pays an annual dividend of $0.42 per share and has a dividend yield of 2.2%. Cape Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. KeyCorp pays out 36.8% of its earnings in the form of a dividend. Cape Bancorp pays out 43.5% 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. KeyCorp has increased its dividend for 6 consecutive years.
Insider & Institutional Ownership
81.2% of KeyCorp shares are held by institutional investors. 0.7% of KeyCorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and price targets for KeyCorp and Cape Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KeyCorp currently has a consensus price target of $20.97, suggesting a potential upside of 8.19%. Given KeyCorp’s higher probable upside, equities research analysts clearly believe KeyCorp is more favorable than Cape Bancorp.
Volatility and Risk
KeyCorp has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Cape Bancorp has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.
This table compares KeyCorp and Cape Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
KeyCorp beats Cape Bancorp on 12 of the 13 factors compared between the two stocks.
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.
About Cape Bancorp
Cape Bancorp, Inc. (Cape Bancorp) is the holding company of Cape Bank (the Bank). The Bank focuses on providing deposit and loan products to retail customers and to small and mid-sized businesses from its fourteen full service branch offices, located in Atlantic and Cape May Counties, one drive-up teller/ATM operation in Atlantic County, three market development offices (MDOs) located in Burlington, Cape May and Atlantic Counties in New Jersey, and two MDOs in Pennsylvania servicing the five county Philadelphia market located in Radnor, Delaware County and in Philadelphia. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial mortgages, commercial business loans, home equity loans and lines of credit (HELOC) and construction loans. Its retail and business banking deposit products include checking accounts, money market accounts, savings accounts, and certificates of deposit with terms ranging from 30 days to 60 months.
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