Comparing KeyCorp (NYSE:KEY) & Capital Bancorp (NASDAQ:CBNK)

KeyCorp (NYSE:KEYGet Rating) and Capital Bancorp (NASDAQ:CBNKGet Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Valuation & Earnings

This table compares KeyCorp and Capital Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KeyCorp $7.56 billion 2.54 $2.63 billion $2.63 7.93
Capital Bancorp $173.88 million 1.76 $39.98 million $2.83 7.75

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

Institutional and Insider Ownership

82.8% of KeyCorp shares are owned by institutional investors. Comparatively, 32.4% of Capital Bancorp shares are owned by institutional investors. 0.5% of KeyCorp shares are owned by company insiders. Comparatively, 41.8% of Capital Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for KeyCorp and Capital Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KeyCorp 0 5 8 0 2.62
Capital Bancorp 0 0 0 0 N/A

KeyCorp presently has a consensus target price of $27.15, suggesting a potential upside of 30.13%. Given KeyCorp’s higher probable upside, analysts plainly believe KeyCorp is more favorable than Capital Bancorp.

Profitability

This table compares KeyCorp and Capital Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KeyCorp 33.32% 15.93% 1.37%
Capital Bancorp 22.99% 21.04% 1.82%

Dividends

KeyCorp pays an annual dividend of $0.78 per share and has a dividend yield of 3.7%. Capital Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. KeyCorp pays out 29.7% of its earnings in the form of a dividend. Capital Bancorp pays out 7.1% 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. KeyCorp has increased its dividend for 11 consecutive years. KeyCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

KeyCorp has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Summary

KeyCorp beats Capital Bancorp on 11 of the 16 factors compared between the two stocks.

KeyCorp Company Profile (Get Rating)

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; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, investment, 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 comprising consumer, energy, healthcare, industrial, public sector, real estate, and technology loans for middle market clients. In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services. As of December 31, 2021, it operated through a network of approximately 999 branches and 1,317 ATMs in 15 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center. KeyCorp was founded in 1849 and is headquartered in Cleveland, Ohio.

Capital Bancorp Company Profile (Get Rating)

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in the United States. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments. The company offers a range of deposit products and services, including checking and savings, time, interest bearing demand, and money market accounts, as well as certificates of deposit; and credit cards. It originates residential mortgages and offers residential and commercial real estate, construction, and commercial business loans, as well as other consumer loans, such as term loans, car loans, and boat loans to small to medium-sized businesses, professionals, real estate investors, and small residential builders and individuals. It operates through four commercial bank branches, four mortgage offices, and one loan production office. The company was founded in 1974 and is headquartered in Rockville, Maryland.

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