Comparing First National Bank Alaska (OTCMKTS:FBAK) and Zions Bancorporation, N.A. (NASDAQ:ZION)

First National Bank Alaska (OTCMKTS:FBAK) and Zions Bancorporation, N.A. (NASDAQ:ZION) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility & Risk

First National Bank Alaska has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Zions Bancorporation, N.A. has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares First National Bank Alaska and Zions Bancorporation, N.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National Bank Alaska	N/A	14.33%	1.48%
Zions Bancorporation, N.A.	16.98%	13.76%	0.97%

Analyst Recommendations

This is a summary of current recommendations and price targets for First National Bank Alaska and Zions Bancorporation, N.A., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National Bank Alaska	0	0	0	0	0.00
Zions Bancorporation, N.A.	1	14	4	0	2.16

Zions Bancorporation, N.A. has a consensus price target of $60.7778, indicating a potential upside of 8.80%. Given Zions Bancorporation, N.A.’s stronger consensus rating and higher probable upside, analysts clearly believe Zions Bancorporation, N.A. is more favorable than First National Bank Alaska.

Institutional and Insider Ownership

76.8% of Zions Bancorporation, N.A. shares are owned by institutional investors. 2.2% of Zions Bancorporation, N.A. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 5.8%. Zions Bancorporation, N.A. pays an annual dividend of $1.80 per share and has a dividend yield of 3.2%. First National Bank Alaska pays out 68.5% of its earnings in the form of a dividend. Zions Bancorporation, N.A. pays out 32.9% 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. Zions Bancorporation, N.A. has raised its dividend for 12 consecutive years.

Valuation and Earnings

This table compares First National Bank Alaska and Zions Bancorporation, N.A.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Bank Alaska	$87.73 million	10.00	$67.05 million	$23.37	11.84
Zions Bancorporation, N.A.	$4.99 billion	1.65	$784.00 million	$5.47	10.21

Zions Bancorporation, N.A. has higher revenue and earnings than First National Bank Alaska. Zions Bancorporation, N.A. is trading at a lower price-to-earnings ratio than First National Bank Alaska, indicating that it is currently the more affordable of the two stocks.

Summary

Zions Bancorporation, N.A. beats First National Bank Alaska on 11 of the 17 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

About Zions Bancorporation, N.A.

Zions Bancorporation, National Association provides various banking products and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. It operates through Zions Bank, California Bank & Trust, Amegy Bank, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and The Commerce Bank of Washington segments. The company offers commercial and small business banking services to small- and medium-sized businesses, such as commercial, industrial, and owner-occupied lending and leasing; municipal and public finance services; depository account and cash management services; commercial and small business cards; merchant processing services; corporate trust services; and correspondent banking and international lending services. It also provides capital markets and investment banking services, including loan syndications, foreign exchange services, interest rate derivatives, fixed income securities underwriting, advisory and capital raising, commercial mortgage-backed security conduit lending, and power and project financing; and commercial real estate lending services consisting of term and construction/land development financing for commercial and residential purposes. In addition, the company offers retail banking services comprising residential mortgages, home equity lines of credit, personal lines of credit, installment consumer loans, depository account services, consumer cards, and personal trust services; and wealth management services consisting of investment management, fiduciary and estate, and advanced business succession and estate planning services. 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 headquartered in Salt Lake City, Utah.