KeyCorp (NYSE:KEY – Get Free Report) and Associated Banc (NYSE:ASB – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility & Risk
KeyCorp has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Associated Banc has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
Institutional and Insider Ownership
79.7% of KeyCorp shares are owned by institutional investors. Comparatively, 83.0% of Associated Banc shares are owned by institutional investors. 0.6% of KeyCorp shares are owned by company insiders. Comparatively, 0.7% of Associated Banc shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares KeyCorp and Associated Banc”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KeyCorp | $11.23 billion | 2.00 | $1.83 billion | $1.72 | 12.25 |
| Associated Banc | $2.46 billion | 2.32 | $474.78 million | $2.86 | 10.57 |
KeyCorp has higher revenue and earnings than Associated Banc. Associated Banc is trading at a lower price-to-earnings ratio than KeyCorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for KeyCorp and Associated Banc, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KeyCorp | 0 | 7 | 12 | 1 | 2.70 |
| Associated Banc | 0 | 6 | 6 | 0 | 2.50 |
KeyCorp presently has a consensus target price of $46.22, indicating a potential upside of 119.33%. Associated Banc has a consensus target price of $32.50, indicating a potential upside of 7.49%. Given KeyCorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe KeyCorp is more favorable than Associated Banc.
Profitability
This table compares KeyCorp and Associated Banc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KeyCorp | 18.56% | 12.06% | 1.09% |
| Associated Banc | 19.66% | 10.64% | 1.12% |
Dividends
KeyCorp pays an annual dividend of $0.82 per share and has a dividend yield of 3.9%. Associated Banc pays an annual dividend of $0.96 per share and has a dividend yield of 3.2%. KeyCorp pays out 47.7% of its earnings in the form of a dividend. Associated Banc pays out 33.6% 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. Associated Banc has increased its dividend for 13 consecutive years.
Summary
KeyCorp beats Associated Banc on 10 of the 18 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 Associated Banc
Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. The company offers lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending and equipment finance, loan syndications products, residential mortgages, home equity loans and lines of credit, personal and installment loans, auto finance and business loans, and business lines of credit. It also provides deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; specialized financial services, such as interest rate risk management and foreign exchange solutions; fiduciary services, such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services; and investable funds solutions, including savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount, and online investment brokerage; investment advisory services; and trust and investment management accounts. In addition, the company offers deposit and transactional solutions, including checking, credit, debit and pre-paid cards, online banking and bill pay; and money transfer services. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.
Receive News & Ratings for KeyCorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KeyCorp and related companies with MarketBeat.com's FREE daily email newsletter.
