Analyzing KeyCorp (KEY) & The Competition
KeyCorp (NYSE: KEY) is one of 312 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare KeyCorp to similar businesses based on the strength of its risk, analyst recommendations, valuation, dividends, institutional ownership, earnings and profitability.
Risk and 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 peers have a beta of 0.81, suggesting that their average share price is 19% less volatile than the S&P 500.
This table compares KeyCorp and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares KeyCorp and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|KeyCorp||$5.39 billion||$791.00 million||15.77|
|KeyCorp Competitors||$5.56 billion||$817.91 million||360.37|
KeyCorp’s peers have higher revenue and earnings than KeyCorp. KeyCorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
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 34.6% 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 peers, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
83.0% of KeyCorp shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Banks” companies are owned by institutional investors. 0.7% of KeyCorp shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for KeyCorp and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KeyCorp currently has a consensus price target of $20.68, indicating a potential upside of 14.05%. As a group, “Banks” companies have a potential downside of 1.18%. Given KeyCorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe KeyCorp is more favorable than its peers.
KeyCorp beats its peers on 10 of the 15 factors compared.
KeyCorp Company Profile
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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