KeyCorp (NYSE: KEY) and First Internet Bancorp (NASDAQ:INBK) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Dividends

KeyCorp pays an annual dividend of $0.38 per share and has a dividend yield of 2.3%. First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. KeyCorp pays out 38.8% of its earnings in the form of a dividend. First Internet Bancorp pays out 10.8% 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. First Internet Bancorp has increased its dividend for 6 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
KeyCorp 16.62% 9.88% 1.01%
First Internet Bancorp 16.58% 8.91% 0.67%

Risk & Volatility

KeyCorp has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, First Internet Bancorp has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500.

Insider and Institutional Ownership

80.8% of KeyCorp shares are owned by institutional investors. Comparatively, 58.1% of First Internet Bancorp shares are owned by institutional investors. 0.7% of KeyCorp shares are owned by insiders. Comparatively, 7.6% of First Internet Bancorp shares are owned by 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 & Earnings

This table compares KeyCorp and First Internet Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
KeyCorp $5.69 billion 3.15 $1.07 billion $0.98 16.81
First Internet Bancorp $53.51 million 3.75 $14.52 million $2.23 13.83

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

Analyst Ratings

This is a summary of current recommendations for KeyCorp and First Internet Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KeyCorp 2 10 13 0 2.44
First Internet Bancorp 0 0 3 0 3.00

KeyCorp currently has a consensus target price of $20.09, suggesting a potential upside of 21.97%. First Internet Bancorp has a consensus target price of $35.17, suggesting a potential upside of 13.99%. Given KeyCorp’s higher probable upside, analysts clearly believe KeyCorp is more favorable than First Internet Bancorp.

Summary

KeyCorp beats First Internet Bancorp on 10 of the 17 factors compared between the two stocks.

KeyCorp Company Profile

KeyCorp is a bank holding company. The Company is a bank-based financial services company. The Company operates through its subsidiary, KeyBank National Association (KeyBank), which is engaged in providing banking services. Through KeyBank and other subsidiaries, it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate and institutional clients. Its segments include Key Community Bank and Key Corporate Bank. Key Community Bank serves individuals and small to mid-sized businesses by offering a range of deposit, investment, lending, credit card, and personalized wealth management products and business advisory services. Key Corporate Bank is a full-service corporate and investment bank focused on serving the needs of middle market clients in industry sectors, which include consumer, energy, healthcare, industrial, public sector, real estate and technology.

First Internet Bancorp Company Profile

First Internet Bancorp is a bank holding company that conducts its business activities through its subsidiary, First Internet Bank of Indiana (the Bank). The Company offers a complement of products and services on a nationwide basis. The Company conducts its deposit operations primarily over the Internet. The Company also offers commercial real estate (CRE) lending, including nationwide single tenant lease financing and commercial and industrial (C&I) lending, including business banking/treasury management services. The Bank provides commercial and retail banking services, with operations conducted on the Internet at www.firstib.com. It offers residential real estate loans, home equity loans and lines of credit, and consumer loans, and loans to commercial clients, which include commercial loans, commercial real estate loans, letters of credit and single tenant lease financing. The Bank’s subsidiary, JKH Realty Services, LLC manages real estate owned properties.

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