Contrasting Zions Bancorporation, N.A. (NASDAQ:ZION) and Coastal Financial (NASDAQ:CCB)

Coastal Financial (NASDAQ:CCB) and Zions Bancorporation, N.A. (NASDAQ:ZION) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Coastal Financial and Zions Bancorporation, N.A., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coastal Financial	1	1	4	1	2.71
Zions Bancorporation, N.A.	1	14	5	1	2.29

Coastal Financial presently has a consensus price target of $128.00, indicating a potential upside of 66.02%. Zions Bancorporation, N.A. has a consensus price target of $63.58, indicating a potential upside of 10.28%. Given Coastal Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Coastal Financial is more favorable than Zions Bancorporation, N.A..

Institutional & Insider Ownership

59.2% of Coastal Financial shares are owned by institutional investors. Comparatively, 76.8% of Zions Bancorporation, N.A. shares are owned by institutional investors. 14.1% of Coastal Financial shares are owned by company insiders. Comparatively, 1.8% of Zions Bancorporation, N.A. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Coastal Financial has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Zions Bancorporation, N.A. has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Valuation & Earnings

This table compares Coastal Financial and Zions Bancorporation, N.A.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coastal Financial	$661.22 million	1.77	$46.99 million	$3.04	25.36
Zions Bancorporation, N.A.	$4.94 billion	1.73	$899.00 million	$6.00	9.61

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

Profitability

This table compares Coastal Financial and Zions Bancorporation, N.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coastal Financial	7.11%	10.16%	1.05%
Zions Bancorporation, N.A.	18.19%	13.70%	1.03%

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

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.