KeyCorp (NYSE: KEY) is one of 310 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare KeyCorp to similar businesses based on the strength of its earnings, dividends, institutional ownership, risk, valuation, profitability and analyst recommendations.

Dividends

KeyCorp pays an annual dividend of $0.38 per share and has a dividend yield of 2.1%. KeyCorp pays out 33.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.3% 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 competitors, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

82.4% of KeyCorp shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Banks” companies are owned by institutional investors. 0.7% of KeyCorp shares are owned by insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by 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 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, KeyCorp’s competitors have a beta of 0.81, suggesting that their average share price is 19% less volatile than the S&P 500.

Profitability

This table compares KeyCorp and its competitors’ 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 18.48% 8.51% 0.93%

Earnings & Valuation

This table compares KeyCorp and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
KeyCorp $5.39 billion $791.00 million 16.05
KeyCorp Competitors $5.49 billion $821.37 million 360.33

KeyCorp’s competitors have higher revenue and earnings than KeyCorp. KeyCorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for KeyCorp and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KeyCorp 2 9 12 0 2.43
KeyCorp Competitors 2127 8342 8364 329 2.36

KeyCorp presently has a consensus target price of $20.68, suggesting a potential upside of 12.01%. As a group, “Banks” companies have a potential downside of 0.98%. Given KeyCorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe KeyCorp is more favorable than its competitors.

Summary

KeyCorp beats its competitors on 10 of the 15 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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