Head-To-Head Survey: Sierra Bancorp (BSRR) and KeyCorp (KEY)

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

Dividends

Sierra Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. KeyCorp pays an annual dividend of $0.42 per share and has a dividend yield of 2.1%. Sierra Bancorp pays out 37.3% of its earnings in the form of a dividend. KeyCorp pays out 36.8% 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. KeyCorp has increased its dividend for 6 consecutive years. KeyCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Sierra Bancorp and KeyCorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sierra Bancorp $87.74 million 4.58 $17.56 million $1.50 17.61
KeyCorp $5.39 billion 3.94 $791.00 million $1.14 17.31

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

Institutional & Insider Ownership

49.2% of Sierra Bancorp shares are owned by institutional investors. Comparatively, 81.2% of KeyCorp shares are owned by institutional investors. 20.8% of Sierra Bancorp shares are owned by insiders. Comparatively, 0.7% of KeyCorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sierra Bancorp and KeyCorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sierra Bancorp 0 3 1 0 2.25
KeyCorp 1 7 13 0 2.57

Sierra Bancorp currently has a consensus price target of $27.94, indicating a potential upside of 5.74%. KeyCorp has a consensus price target of $20.97, indicating a potential upside of 6.27%. Given KeyCorp’s stronger consensus rating and higher probable upside, analysts clearly believe KeyCorp is more favorable than Sierra Bancorp.

Volatility & Risk

Sierra Bancorp has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, KeyCorp has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Sierra Bancorp 21.59% 9.87% 1.03%
KeyCorp 18.69% 10.35% 1.07%

Summary

KeyCorp beats Sierra Bancorp on 12 of the 17 factors compared between the two stocks.

About Sierra Bancorp

Sierra Bancorp is a bank holding company for Bank of the Sierra (the Bank). The Bank is a state-chartered bank, which offers a range of retail and commercial banking services. The Bank’s products and services are related to the business of lending money and accepting deposits. Its customers have access to electronic point-of-sale payment alternatives around the country through the Pulse Electronic Funds Transfer (EFT) network. Its Internet branch provides the ability to open deposit accounts online; an online banking option with bill-pay and mobile banking capabilities, including mobile check deposit; a customer service center that is accessible by toll-free telephone during business hours, and an automated telephone banking system. It offers a range of other banking products and services to complement and support its lending and deposit products, including remote deposit capture and automated payroll services for business customers.

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.

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