Analyzing Zions Bancorp (ZION) & Metro Bancorp (METR)

Zions Bancorp (NASDAQ: ZION) and Metro Bancorp (NASDAQ:METR) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Zions Bancorp 21.58% 9.04% 0.98%
Metro Bancorp 16.68% 7.88% 0.75%

Analyst Ratings

This is a summary of current ratings and recommmendations for Zions Bancorp and Metro Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zions Bancorp 1 5 12 0 2.61
Metro Bancorp 0 0 0 0 N/A

Zions Bancorp presently has a consensus target price of $55.12, suggesting a potential downside of 1.33%.

Dividends

Zions Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Metro Bancorp pays an annual dividend of $0.28 per share. Zions Bancorp pays out 30.5% of its earnings in the form of a dividend. Metro Bancorp pays out 20.0% 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 and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zions Bancorp $2.74 billion 4.03 $592.00 million $2.62 21.32
Metro Bancorp N/A N/A N/A $1.40 N/A

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

Institutional and Insider Ownership

94.0% of Zions Bancorp shares are owned by institutional investors. 1.5% of Zions Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Zions Bancorp beats Metro Bancorp on 10 of the 11 factors compared between the two stocks.

Zions Bancorp 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.

Metro Bancorp Company Profile

Metro Bancorp, Inc. is a bank holding company. The Company provides full banking services through its subsidiary, Metro Bank (the Bank), which is a state-chartered bank. The Bank offers its lending and depository services from its main store in Lemoyne, Pennsylvania, and its around 33 other full-service stores located in Cumberland, Dauphin, York, Berks, Lancaster and Lebanon Counties, Pennsylvania. The Bank provides retail and commercial banking services for consumers and small and mid-sized companies. The Bank’s lending and investment activities are funded principally by retail deposits gathered through its retail store office network. The Bank provides a range of retail banking services and products, including free personal checking accounts and business checking accounts, regular savings accounts, money market accounts, interest checking accounts, fixed rate certificates of deposit (CDs), individual retirement accounts, club accounts, and debit card services, among others.

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