Critical Review: Zions Bancorporation, National Association (NASDAQ:ZION) versus Carter Bankshares (NASDAQ:CARE)

Zions Bancorporation, National Association (NASDAQ:ZION) and Carter Bankshares (NASDAQ:CARE) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

76.8% of Zions Bancorporation, National Association shares are owned by institutional investors. Comparatively, 41.5% of Carter Bankshares shares are owned by institutional investors. 2.2% of Zions Bancorporation, National Association shares are owned by insiders. Comparatively, 2.2% of Carter Bankshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Zions Bancorporation, National Association and Carter Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zions Bancorporation, National Association	13.23%	14.05%	0.82%
Carter Bankshares	6.11%	4.49%	0.35%

Volatility & Risk

Zions Bancorporation, National Association has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Carter Bankshares has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Zions Bancorporation, National Association and Carter Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zions Bancorporation, National Association	2	15	3	0	2.05
Carter Bankshares	0	0	0	0	N/A

Zions Bancorporation, National Association currently has a consensus price target of $43.16, suggesting a potential downside of 2.56%. Given Zions Bancorporation, National Association’s higher probable upside, analysts plainly believe Zions Bancorporation, National Association is more favorable than Carter Bankshares.

Earnings and Valuation

This table compares Zions Bancorporation, National Association and Carter Bankshares’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zions Bancorporation, National Association	$4.62 billion	1.41	$680.00 million	$3.98	11.13
Carter Bankshares	$124.28 million	2.44	$23.19 million	$0.57	23.12

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

Summary

Zions Bancorporation, National Association beats Carter Bankshares on 10 of the 13 factors compared between the two stocks.

About Zions Bancorporation, National Association

Zions Bancorporation, National Association provides various banking products and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. It operates through Zions Bank, California Bank & Trust, Amegy Bank, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and The Commerce Bank of Washington segments. The company offers commercial and small business banking services to small- and medium-sized businesses, such as commercial, industrial, and owner-occupied lending and leasing; municipal and public finance services; depository account and cash management services; commercial and small business cards; merchant processing services; corporate trust services; and correspondent banking and international lending services. It also provides capital markets and investment banking services, including loan syndications, foreign exchange services, interest rate derivatives, fixed income securities underwriting, advisory and capital raising, commercial mortgage-backed security conduit lending, and power and project financing; and commercial real estate lending services consisting of term and construction/land development financing for commercial and residential purposes. In addition, the company offers retail banking services comprising residential mortgages, home equity lines of credit, personal lines of credit, installment consumer loans, depository account services, consumer cards, and personal trust services; and wealth management services consisting of investment management, fiduciary and estate, and advanced business succession and estate planning services. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.

About Carter Bankshares

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.