Head to Head Analysis: KeyCorp (KEY) vs. CoBiz Financial (COBZ)

KeyCorp (NYSE: KEY) and CoBiz Financial (NASDAQ:COBZ) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Dividends

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KeyCorp pays an annual dividend of $0.42 per share and has a dividend yield of 2.2%. CoBiz Financial pays an annual dividend of $0.22 per share and has a dividend yield of 1.1%. KeyCorp pays out 30.9% of its earnings in the form of a dividend. CoBiz Financial pays out 23.2% 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 raised its dividend for 7 consecutive years. KeyCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares KeyCorp and CoBiz Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KeyCorp 18.06% 10.66% 1.10%
CoBiz Financial 18.58% 12.44% 1.05%

Insider & Institutional Ownership

81.7% of KeyCorp shares are owned by institutional investors. Comparatively, 82.3% of CoBiz Financial shares are owned by institutional investors. 0.7% of KeyCorp shares are owned by company insiders. Comparatively, 9.5% of CoBiz Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

KeyCorp has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, CoBiz Financial has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Valuation & Earnings

This table compares KeyCorp and CoBiz Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KeyCorp $6.87 billion 2.95 $1.30 billion $1.36 14.04
CoBiz Financial $177.19 million 4.72 $32.91 million $0.95 20.85

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

Analyst Recommendations

This is a summary of current recommendations for KeyCorp and CoBiz Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KeyCorp 1 5 16 0 2.68
CoBiz Financial 0 2 2 0 2.50

KeyCorp currently has a consensus price target of $22.10, indicating a potential upside of 15.77%. CoBiz Financial has a consensus price target of $22.17, indicating a potential upside of 11.90%. Given KeyCorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe KeyCorp is more favorable than CoBiz Financial.

Summary

KeyCorp beats CoBiz Financial on 9 of the 17 factors compared between the two stocks.

KeyCorp Company Profile

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States. The company's Key Community Bank segment offers various deposit and investment products, personal finance services, residential mortgages, home equity loans, credit cards, and installment loans, as well as personal property and casualty insurance, such as home, auto, renters, watercraft, and umbrella insurance for individuals. It also purchases retail auto sales contracts through a network of auto dealership; offers financial, estate and retirement planning, asset management, and trust services, as well as portfolio management, life insurance, charitable giving, and related services for high-net-worth clients. In addition, this segment provides deposits, investment and credit products, and business advisory services to small businesses; and commercial lending, cash management, equipment leasing, investment, and commercial property and casualty insurance products, as well as employee benefit programs, succession planning, capital market access, derivatives, and foreign exchange services to mid-sized businesses. Its Key Corporate Bank segment offers a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans for middle market clients comprising consumer, energy, healthcare, industrial, public, real estate, and technology sectors. As of December 31, 2017, the company offered its products and services through 1,197 retail banking branches and 1,572 automated teller machines in 15 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center. KeyCorp was founded in 1849 and is headquartered in Cleveland, Ohio.

CoBiz Financial Company Profile

CoBiz Financial Inc., a diversified financial services company, provides various financial products and services in the United States. It operates through Commercial Banking and Fee-Based Lines segments. The Commercial Banking segment offers commercial, real estate, and private banking services, as well as treasury management, interest-rate hedging, and depository products. The Fee-Based Lines segment provides investment advisory and insurance brokerage services; investment management advisory services to individuals, families, and businesses; and property and casualty, and employee benefit group insurance broker agency services to small- to mid-sized employers, commercial enterprises, and individual lines to their owners. CoBiz Financial Inc. operates 11 locations, including 7 in the Denver metropolitan area, as well as one each in Boulder, Colorado Springs, Fort Collins, and Vail located in Colorado under the Colorado Business Bank name; and 4 locations serving the Phoenix metropolitan area and the surrounding area of Maricopa County in Arizona under the Arizona Business Bank name. The company was formerly known as CoBiz Inc. and changed its name to CoBiz Financial Inc. in May 2007. CoBiz Financial Inc., was founded in 1980 and is headquartered in Denver, Colorado.

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