Zions Bancorporation, National Association (NASDAQ:ZION) and Cadence Bancorporation (NYSE:CADE) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Volatility & Risk
Zions Bancorporation, National Association has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Cadence Bancorporation has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.
Dividends
Zions Bancorporation, National Association pays an annual dividend of $1.36 per share and has a dividend yield of 2.8%. Cadence Bancorporation pays an annual dividend of $0.30 per share and has a dividend yield of 1.5%. Zions Bancorporation, National Association pays out 31.4% of its earnings in the form of a dividend. Cadence Bancorporation pays out 17.4% 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. Zions Bancorporation, National Association has increased its dividend for 5 consecutive years. Zions Bancorporation, National Association is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Zions Bancorporation, National Association and Cadence Bancorporation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Zions Bancorporation, National Association | 1 | 12 | 5 | 1 | 2.32 |
Cadence Bancorporation | 0 | 2 | 4 | 1 | 2.86 |
Zions Bancorporation, National Association presently has a consensus target price of $41.9375, indicating a potential downside of 14.66%. Cadence Bancorporation has a consensus target price of $13.9167, indicating a potential downside of 32.15%. Given Zions Bancorporation, National Association's higher possible upside, equities research analysts plainly believe Zions Bancorporation, National Association is more favorable than Cadence Bancorporation.
Valuation and Earnings
This table compares Zions Bancorporation, National Association and Cadence Bancorporation's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Zions Bancorporation, National Association | $3.25 billion | 2.48 | $816 million | $4.33 | 11.35 |
Cadence Bancorporation | $991 million | 2.61 | $201.96 million | $1.72 | 11.92 |
Zions Bancorporation, National Association has higher revenue and earnings than Cadence Bancorporation. Zions Bancorporation, National Association is trading at a lower price-to-earnings ratio than Cadence Bancorporation, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Zions Bancorporation, National Association and Cadence Bancorporation's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Zions Bancorporation, National Association | 14.58% | 6.79% | 0.65% |
Cadence Bancorporation | -40.33% | 2.70% | 0.33% |
Institutional & Insider Ownership
86.3% of Zions Bancorporation, National Association shares are held by institutional investors. Comparatively, 90.1% of Cadence Bancorporation shares are held by institutional investors. 1.8% of Zions Bancorporation, National Association shares are held by insiders. Comparatively, 3.0% of Cadence Bancorporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Zions Bancorporation, National Association beats Cadence Bancorporation on 11 of the 17 factors compared between the two stocks.