Zions Bancorporation (NASDAQ: ZION) and CPB (NYSE:CPF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Zions Bancorporation pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. CPB pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Zions Bancorporation pays out 19.1% of its earnings in the form of a dividend. CPB pays out 45.9% 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.

Valuation & Earnings

This table compares Zions Bancorporation and CPB’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Zions Bancorporation $2.46 billion 3.84 $507.45 million $2.51 18.60
CPB $204.25 million 4.76 $47.79 million $1.57 20.32

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

Insider & Institutional Ownership

92.4% of Zions Bancorporation shares are held by institutional investors. Comparatively, 91.4% of CPB shares are held by institutional investors. 1.5% of Zions Bancorporation shares are held by insiders. Comparatively, 4.1% of CPB shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Zions Bancorporation 21.97% 8.14% 0.90%
CPB 22.59% 9.52% 0.90%

Analyst Ratings

This is a summary of current ratings and target prices for Zions Bancorporation and CPB, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zions Bancorporation 1 10 11 0 2.45
CPB 0 2 1 0 2.33

Zions Bancorporation currently has a consensus price target of $46.42, indicating a potential downside of 0.58%. CPB has a consensus price target of $30.25, indicating a potential downside of 5.20%. Given Zions Bancorporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Zions Bancorporation is more favorable than CPB.

Risk and Volatility

Zions Bancorporation has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, CPB has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Summary

Zions Bancorporation beats CPB on 9 of the 15 factors compared between the two stocks.

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.

CPB Company Profile

Central Pacific Financial Corp. is the bank holding company of Central Pacific Bank (the Bank). The Company’s segments include Banking Operations, Treasury and All Others. The Banking Operations segment includes construction and real estate development lending, commercial lending, residential mortgage lending, consumer lending, trust services, retail brokerage services and its retail branch offices, which provide a range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company’s investment securities portfolio and wholesale funding activities. The All Others segment includes activities, such as electronic banking, data processing and management of Bank-owned properties. The Company also offers wealth management products and services, such as non-deposit investment products, annuities, insurance, investment management, asset custody, and general consultation and planning services.

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