Critical Survey: KeyCorp (KEY) & JPMorgan Chase & Co. (JPM)

KeyCorp (NYSE: KEY) and JPMorgan Chase & Co. (NYSE:JPM) are both large-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

81.6% of KeyCorp shares are owned by institutional investors. Comparatively, 73.9% of JPMorgan Chase & Co. shares are owned by institutional investors. 0.7% of KeyCorp shares are owned by company insiders. Comparatively, 0.9% of JPMorgan Chase & Co. 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.

Profitability

This table compares KeyCorp and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KeyCorp 18.06% 10.66% 1.10%
JPMorgan Chase & Co. 21.46% 11.63% 1.05%

Volatility & Risk

KeyCorp has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Dividends

KeyCorp pays an annual dividend of $0.42 per share and has a dividend yield of 2.0%. JPMorgan Chase & Co. pays an annual dividend of $2.24 per share and has a dividend yield of 1.9%. KeyCorp pays out 37.5% of its earnings in the form of a dividend. JPMorgan Chase & Co. pays out 35.1% 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. KeyCorp has raised its dividend for 7 consecutive years and JPMorgan Chase & Co. has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for KeyCorp and JPMorgan Chase & Co., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KeyCorp 1 5 16 0 2.68
JPMorgan Chase & Co. 1 11 13 0 2.48

KeyCorp currently has a consensus target price of $22.03, suggesting a potential upside of 2.78%. JPMorgan Chase & Co. has a consensus target price of $104.52, suggesting a potential downside of 9.20%. Given KeyCorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe KeyCorp is more favorable than JPMorgan Chase & Co..

Earnings & Valuation

This table compares KeyCorp and JPMorgan Chase & Co.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KeyCorp $6.87 billion 3.34 $1.30 billion $1.12 19.13
JPMorgan Chase & Co. $113.90 billion 3.51 $24.44 billion $6.38 18.04

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

Summary

JPMorgan Chase & Co. beats KeyCorp on 9 of the 16 factors compared between the two stocks.

About KeyCorp

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.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services. It operates in four segments, as well as a Corporate segment. Its segments are Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset Management. The Consumer & Community Banking segment offers services to consumers and businesses through bank branches, automatic teller machines (ATMs), online, mobile and telephone banking. The Corporate & Investment Bank segment, comprising Banking and Markets & Investor Services, offers investment banking, market-making, prime brokerage, and treasury and securities products and services to corporations, investors, financial institutions, and government and municipal entities. The Commercial Banking segment provides financial solutions, including lending, treasury services, investment banking and asset management. The Asset Management segment comprises investment and wealth management.

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