1st Colonial Bancorp (OTCMKTS:FCOB) and KeyCorp (NYSE:KEY) Financial Comparison

1st Colonial Bancorp (OTCMKTS:FCOB) and KeyCorp (NYSE:KEY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Profitability

This table compares 1st Colonial Bancorp and KeyCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Colonial Bancorp	16.80%	11.14%	0.92%
KeyCorp	7.35%	8.64%	0.54%

Analyst Ratings

This is a summary of current ratings and price targets for 1st Colonial Bancorp and KeyCorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Colonial Bancorp	0	0	0	0	N/A
KeyCorp	0	7	10	0	2.59

KeyCorp has a consensus target price of $16.25, suggesting a potential upside of 15.04%. Given KeyCorp’s higher probable upside, analysts clearly believe KeyCorp is more favorable than 1st Colonial Bancorp.

Institutional and Insider Ownership

13.4% of 1st Colonial Bancorp shares are owned by institutional investors. Comparatively, 79.7% of KeyCorp shares are owned by institutional investors. 0.6% of KeyCorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares 1st Colonial Bancorp and KeyCorp’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Colonial Bancorp	$42.11 million	1.78	$7.43 million	$1.55	10.12
KeyCorp	$10.40 billion	1.28	$967.00 million	$0.79	17.88

KeyCorp has higher revenue and earnings than 1st Colonial Bancorp. 1st Colonial Bancorp is trading at a lower price-to-earnings ratio than KeyCorp, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

1st Colonial Bancorp has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, KeyCorp has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Summary

KeyCorp beats 1st Colonial Bancorp on 8 of the 13 factors compared between the two stocks.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.

About KeyCorp

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; commercial leasing, investment management, consumer finance; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses. It also provides a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans to consumer, energy, healthcare, industrial, public sector, real estate, and technology sectors for middle market clients. In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services. The company was founded in 1849 and is headquartered in Cleveland, Ohio.