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

Profitability

This table compares KeyCorp and Hudson Valley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KeyCorp 18.69% 10.35% 1.07%
Hudson Valley 17.98% 6.34% 0.61%

Institutional & Insider Ownership

81.0% of KeyCorp shares are held by institutional investors. 0.7% of KeyCorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for KeyCorp and Hudson Valley, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KeyCorp 1 6 14 0 2.62
Hudson Valley 0 0 0 0 N/A

KeyCorp currently has a consensus price target of $21.44, suggesting a potential upside of 0.83%. Given KeyCorp’s higher possible upside, equities analysts plainly believe KeyCorp is more favorable than Hudson Valley.

Dividends

KeyCorp pays an annual dividend of $0.42 per share and has a dividend yield of 2.0%. Hudson Valley does not pay a dividend. KeyCorp pays out 36.8% of its earnings in the form of a dividend. KeyCorp has increased its dividend for 7 consecutive years.

Earnings & Valuation

This table compares KeyCorp and Hudson Valley’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KeyCorp $5.39 billion 4.24 $791.00 million $1.14 18.65
Hudson Valley N/A N/A N/A $0.55 51.29

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

Summary

KeyCorp beats Hudson Valley on 11 of the 13 factors compared between the two stocks.

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.

About Hudson Valley

Hudson Valley Holding Corp. (Hudson Valley) is a bank holding company. The Company provides financial services through its wholly owned subsidiary, Hudson Valley Bank, N.A. (HVB or the Bank), a national banking association. HVB has 17 branch offices in Westchester County, New York, four in Manhattan, New York, four in Bronx County, New York, two in Rockland County, New York, and one in Kings County, New York. The Company provides asset-based lending products through a wholly owned subsidiary of HVB, HVB Capital Credit LLC. The Company provides equipment loan and lease financing through a wholly owned subsidiary of HVB, HVB Equipment Capital, LLC. The Company’s principal customers are businesses, professionals, municipalities, not-for-profit organizations and individuals. In addition, the Company also offers a software application designed to meet the administrative needs of bankruptcy trustees through a marketing and licensing agreement with the application vendor.

Receive News & Ratings for KeyCorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KeyCorp and related companies with MarketBeat.com's FREE daily email newsletter.