Eagle Bancorp Montana (NASDAQ: EBMT) and Zions Bancorporation (NASDAQ:ZION) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitabiliy, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Eagle Bancorp Montana has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Zions Bancorporation has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Valuation & Earnings

This table compares Eagle Bancorp Montana and Zions Bancorporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eagle Bancorp Montana $36.03 million 2.00 $5.14 million $1.35 14.04
Zions Bancorporation $2.36 billion 3.64 $449.84 million $2.22 19.07

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

Profitability

This table compares Eagle Bancorp Montana and Zions Bancorporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Bancorp Montana 12.82% 8.80% 0.78%
Zions Bancorporation 20.50% 7.44% 0.83%

Dividends

Eagle Bancorp Montana pays an annual dividend of $0.32 per share and has a dividend yield of 1.7%. Zions Bancorporation pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. Eagle Bancorp Montana pays out 23.7% of its earnings in the form of a dividend. Zions Bancorporation pays out 14.4% 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.

Insider and Institutional Ownership

29.0% of Eagle Bancorp Montana shares are held by institutional investors. Comparatively, 95.4% of Zions Bancorporation shares are held by institutional investors. 9.9% of Eagle Bancorp Montana shares are held by insiders. Comparatively, 1.5% of Zions Bancorporation shares are held by 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Eagle Bancorp Montana and Zions Bancorporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Bancorp Montana 0 0 0 0 N/A
Zions Bancorporation 0 11 9 0 2.45

Zions Bancorporation has a consensus target price of $43.67, indicating a potential upside of 3.13%. Given Zions Bancorporation’s higher probable upside, analysts clearly believe Zions Bancorporation is more favorable than Eagle Bancorp Montana.

Summary

Zions Bancorporation beats Eagle Bancorp Montana on 12 of the 15 factors compared between the two stocks.

Eagle Bancorp Montana Company Profile

Eagle Bancorp Montana, Inc. is the bank holding company for Opportunity Bank of Montana (the Bank). The Bank is a Montana-chartered commercial bank. The Bank has equity investments in Certified Development Entities, which have received allocations of New Markets Tax Credits (NMTC). The Company offers wealth management services at its locations through financial advisors employed by the Bank. The Bank originates residential mortgages (one- to four-family) and commercial real estate loans, real estate construction loans, home equity loans, consumer loans and commercial loans. The Bank offers a range of deposit accounts, which include certificates of deposit accounts ranging in terms from 90 days to 5 years, as well as, checking, savings and money market accounts. Individual retirement accounts (IRAs) are included in certificates of deposit.

Zions Bancorporation Company Profile

Zions Bancorporation is a financial holding company. The Company conducts its banking operations through separately managed and branded segments, including Zions Bank, Amegy Bank, California Bank & Trust, National Bank of Arizona, Nevada State Bank (NSB), Vectra Bank Colorado, The Commerce Bank of Washington (TCBW) and Other. It focuses on providing community banking services through its business lines, including small and medium-sized business and corporate banking; commercial and residential development, construction and term lending; retail banking; treasury cash management and related products and services; residential mortgage servicing and lending; trust and wealth management; limited capital markets activities, including municipal finance advisory and underwriting, and investment activities. It provides a range of banking and related services, primarily in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming.

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