Zions Bancorp (NASDAQ:ZION) and Standard Chartered (OTCMKTS:SCBFF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Zions Bancorp and Standard Chartered’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zions Bancorp 25.03% 10.86% 1.17%
Standard Chartered N/A N/A N/A

Institutional and Insider Ownership

94.8% of Zions Bancorp shares are owned by institutional investors. 1.6% of Zions Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Zions Bancorp has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Dividends

Zions Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Standard Chartered does not pay a dividend. Zions Bancorp pays out 42.0% of its earnings in the form of a dividend. Zions Bancorp has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares Zions Bancorp and Standard Chartered’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zions Bancorp $2.74 billion 3.42 $592.00 million $2.86 16.84
Standard Chartered $20.68 billion 1.19 $1.22 billion $0.46 16.18

Standard Chartered has higher revenue and earnings than Zions Bancorp. Standard Chartered is trading at a lower price-to-earnings ratio than Zions Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Zions Bancorp and Standard Chartered, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zions Bancorp 0 7 10 1 2.67
Standard Chartered 0 2 2 0 2.50

Zions Bancorp presently has a consensus price target of $59.56, indicating a potential upside of 23.64%. Given Zions Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Zions Bancorp is more favorable than Standard Chartered.

Summary

Zions Bancorp beats Standard Chartered on 14 of the 18 factors compared between the two stocks.

About Zions Bancorp

Zions Bancorporation, National Association provides various banking and related services primarily in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers community banking services, such as small and medium-sized business and corporate banking; commercial and residential development, construction, and term lending; retail banking; treasury cash management and related products and services; residential mortgage servicing and lending services; trust and wealth management services; capital markets services, including municipal finance advisory and underwriting; and investment services. It also offers personal banking services to individuals, including home mortgages, bankcards, other installment loans, home equity lines of credit, checking accounts, savings accounts, certificates of deposit of various types and maturities, trust services, safe deposit facilities, and Internet and mobile banking services. In addition, the company provides self-directed brokerage services; and small business administration lending and secondary market agricultural real estate mortgage loans; and bond transfer, stock transfer, and escrow services for corporate customers. As of December 31, 2017, it operated 433 domestic branches. 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 based in Salt Lake City, Utah.

About Standard Chartered

Standard Chartered PLC provides various banking products and services in the Greater China and North Asia, ASEAN and South Asia, Africa and the Middle East, and Europe and America. The company operates in four segments: Corporate & Institutional Banking, Private Banking, Commercial Banking, and Retail Banking. It offers personal banking products and services, including savings and accounts; personal, instalment, or revolving loans; mortgages; credit cards; life, savings and retirement planning, health and medical, home, motor, and travel insurance products; investment advisory services; retail FX products; mutual funds; and employee banking services. The company also provides business banking products and services, such as transaction banking comprising cash management, trade finance, and securities services; financial market solutions to meet risk management, financing, and investment needs; wealth management; and corporate finance services consisting of project and export, structured trade, leveraged, structured, and principal finance solutions, as well as mergers and acquisitions advisory services. Its business banking products and services also include renminbi services; small and medium enterprises banking services, such as business expansion and protection, and working capital; and Islamic business banking products and services. In addition, the company offers private, online, and mobile banking services. It serves large corporations, financial institutions, governments, high net worth individuals, small businesses, mid-sized companies, and individuals. The company operates approximately 1,026 branches and outlets in 63 markets. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

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