KeyCorp (NYSE:KEY – Get Free Report) and Finward Bancorp (NASDAQ:FNWD – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for KeyCorp and Finward Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KeyCorp | 0 | 7 | 12 | 1 | 2.70 |
| Finward Bancorp | 0 | 1 | 2 | 0 | 2.67 |
KeyCorp presently has a consensus price target of $49.14, suggesting a potential upside of 123.81%. Finward Bancorp has a consensus price target of $41.00, suggesting a potential downside of 6.61%. Given KeyCorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe KeyCorp is more favorable than Finward Bancorp.
Institutional & Insider Ownership
Valuation and Earnings
This table compares KeyCorp and Finward Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KeyCorp | $11.23 billion | 2.09 | $1.83 billion | $1.72 | 12.77 |
| Finward Bancorp | $101.06 million | 1.88 | $8.09 million | $2.27 | 19.34 |
KeyCorp has higher revenue and earnings than Finward Bancorp. KeyCorp is trading at a lower price-to-earnings ratio than Finward Bancorp, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
KeyCorp has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Finward Bancorp has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.
Dividends
KeyCorp pays an annual dividend of $0.82 per share and has a dividend yield of 3.7%. Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. KeyCorp pays out 47.7% of its earnings in the form of a dividend. Finward Bancorp pays out 21.1% 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.
Profitability
This table compares KeyCorp and Finward Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KeyCorp | 17.83% | 11.23% | 1.05% |
| Finward Bancorp | 9.65% | 5.68% | 0.48% |
Summary
KeyCorp beats Finward Bancorp on 13 of the 17 factors compared between the two stocks.
About KeyCorp
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.
About Finward Bancorp
Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.
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