Financial Survey: Simmons First National (NASDAQ:SFNC) & KeyCorp (NYSE:KEY)

Simmons First National (NASDAQ:SFNCGet Free Report) and KeyCorp (NYSE:KEYGet Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Insider and Institutional Ownership

27.6% of Simmons First National shares are owned by institutional investors. Comparatively, 79.7% of KeyCorp shares are owned by institutional investors. 1.9% of Simmons First National shares are owned by insiders. Comparatively, 0.6% of KeyCorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Simmons First National has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, KeyCorp has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Dividends

Simmons First National pays an annual dividend of $0.84 per share and has a dividend yield of 3.9%. KeyCorp pays an annual dividend of $0.82 per share and has a dividend yield of 4.9%. Simmons First National pays out 63.2% of its earnings in the form of a dividend. KeyCorp pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Simmons First National has raised its dividend for 13 consecutive years and KeyCorp has raised its dividend for 13 consecutive years.

Profitability

This table compares Simmons First National and KeyCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Simmons First National 10.49% 5.33% 0.66%
KeyCorp 7.35% 8.64% 0.54%

Analyst Ratings

This is a summary of recent ratings for Simmons First National and KeyCorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simmons First National 1 3 0 0 1.75
KeyCorp 0 6 11 0 2.65

Simmons First National presently has a consensus price target of $21.75, suggesting a potential upside of 2.26%. KeyCorp has a consensus price target of $16.91, suggesting a potential upside of 1.09%. Given Simmons First National’s higher probable upside, analysts plainly believe Simmons First National is more favorable than KeyCorp.

Valuation & Earnings

This table compares Simmons First National and KeyCorp”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Simmons First National $755.35 million 3.53 $175.06 million $1.33 15.99
KeyCorp $10.40 billion 1.52 $967.00 million $0.79 21.18

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

Summary

KeyCorp beats Simmons First National on 9 of the 16 factors compared between the two stocks.

About Simmons First National

(Get Free Report)

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

About KeyCorp

(Get Free Report)

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; commercial leasing, investment management, consumer finance; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses. It also provides a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans to consumer, energy, healthcare, industrial, public sector, real estate, and technology sectors for middle market clients. In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services. The company was founded in 1849 and is headquartered in Cleveland, Ohio.

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