Northrim BanCorp (NASDAQ:NRIM) and Zions Bancorporation, N.A. (NASDAQ:ZION) Critical Analysis

Northrim BanCorp (NASDAQ:NRIM) and Zions Bancorporation, N.A. (NASDAQ:ZION) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Northrim BanCorp and Zions Bancorporation, N.A., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrim BanCorp	0	0	2	1	3.33
Zions Bancorporation, N.A.	1	13	7	2	2.43

Northrim BanCorp currently has a consensus target price of $33.00, indicating a potential upside of 22.86%. Zions Bancorporation, N.A. has a consensus target price of $61.35, indicating a potential upside of 3.54%. Given Northrim BanCorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Northrim BanCorp is more favorable than Zions Bancorporation, N.A..

Profitability

This table compares Northrim BanCorp and Zions Bancorporation, N.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	25.32%	18.12%	1.64%
Zions Bancorporation, N.A.	17.22%	13.56%	0.98%

Dividends

Northrim BanCorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Zions Bancorporation, N.A. pays an annual dividend of $1.80 per share and has a dividend yield of 3.0%. Northrim BanCorp pays out 22.8% of its earnings in the form of a dividend. Zions Bancorporation, N.A. pays out 32.3% 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. Northrim BanCorp has raised its dividend for 16 consecutive years and Zions Bancorporation, N.A. has raised its dividend for 12 consecutive years.

Volatility & Risk

Northrim BanCorp has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Zions Bancorporation, N.A. has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. Comparatively, 76.8% of Zions Bancorporation, N.A. shares are owned by institutional investors. 3.9% of Northrim BanCorp shares are owned by insiders. Comparatively, 2.2% of Zions Bancorporation, N.A. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Northrim BanCorp and Zions Bancorporation, N.A.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrim BanCorp	$195.96 million	3.03	$36.97 million	$2.81	9.56
Zions Bancorporation, N.A.	$4.99 billion	1.75	$784.00 million	$5.58	10.62

Zions Bancorporation, N.A. has higher revenue and earnings than Northrim BanCorp. Northrim BanCorp is trading at a lower price-to-earnings ratio than Zions Bancorporation, N.A., indicating that it is currently the more affordable of the two stocks.

Summary

Northrim BanCorp beats Zions Bancorporation, N.A. on 10 of the 18 factors compared between the two stocks.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

About Zions Bancorporation, N.A.

Zions Bancorporation, National Association provides various banking products and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. It operates through Zions Bank, California Bank & Trust, Amegy Bank, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and The Commerce Bank of Washington segments. The company offers commercial and small business banking services to small- and medium-sized businesses, such as commercial, industrial, and owner-occupied lending and leasing; municipal and public finance services; depository account and cash management services; commercial and small business cards; merchant processing services; corporate trust services; and correspondent banking and international lending services. It also provides capital markets and investment banking services, including loan syndications, foreign exchange services, interest rate derivatives, fixed income securities underwriting, advisory and capital raising, commercial mortgage-backed security conduit lending, and power and project financing; and commercial real estate lending services consisting of term and construction/land development financing for commercial and residential purposes. In addition, the company offers retail banking services comprising residential mortgages, home equity lines of credit, personal lines of credit, installment consumer loans, depository account services, consumer cards, and personal trust services; and wealth management services consisting of investment management, fiduciary and estate, and advanced business succession and estate planning services. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.