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

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for KeyCorp and 1st Colonial Bancorp, as provided by MarketBeat.com.

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

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

Valuation and Earnings

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

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

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.

Insider and Institutional Ownership

79.7% of KeyCorp shares are owned by institutional investors. Comparatively, 13.4% of 1st Colonial Bancorp shares are owned by institutional investors. 0.6% of KeyCorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

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

Profitability

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

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

Summary

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

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.

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.