KeyCorp (NYSE:KEY) versus Nordea Bank (OTCMKTS:NRDBY) Head to Head Analysis

Nordea Bank (OTCMKTS:NRDBY) and KeyCorp (NYSE:KEY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Nordea Bank and KeyCorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nordea Bank	1	3	2	1	2.43
KeyCorp	0	7	12	1	2.70

KeyCorp has a consensus price target of $49.14, suggesting a potential upside of 125.05%. Given KeyCorp’s stronger consensus rating and higher possible upside, analysts plainly believe KeyCorp is more favorable than Nordea Bank.

Volatility & Risk

Nordea Bank has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, KeyCorp has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares Nordea Bank and KeyCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nordea Bank	22.82%	15.18%	0.71%
KeyCorp	17.83%	11.23%	1.05%

Insider & Institutional Ownership

0.0% of Nordea Bank 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 company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Nordea Bank pays an annual dividend of $0.35 per share and has a dividend yield of 1.7%. KeyCorp pays an annual dividend of $0.82 per share and has a dividend yield of 3.8%. Nordea Bank pays out 21.7% of its earnings in the form of a dividend. KeyCorp pays out 47.7% 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.

Earnings & Valuation

This table compares Nordea Bank and KeyCorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nordea Bank	$23.46 billion	2.99	$5.48 billion	$1.61	12.82
KeyCorp	$7.60 billion	3.07	$1.83 billion	$1.72	12.69

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

Summary

KeyCorp beats Nordea Bank on 10 of the 16 factors compared between the two stocks.

About Nordea Bank

Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates & Institutions, and Asset & Wealth Management segments. The Personal Banking segment provides various financial services to customers through mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and cards and finance solutions to corporate and personal customers. The Large Corporates & Institutions segment provides financing, cash management and payment, investment banking, capital market products, and securities services to corporate and institutional customers. The Asset & Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. It also offers account-based products, such as lending and deposit; project finance services, asset-based financing through leasing, hire purchase, and factoring, as well as sales to finance partners, such as dealers, vendors, and retailers; financial instruments or arrangement for financial instruments, including currencies, commodities, stocks, and bonds; and asset management, including investment funds, discretionary management, portfolio advice, equity trading, and pension accounts, as well as life insurance and pension products and services. Nordea Bank Abp was founded in 1820 and is headquartered in Helsinki, Finland.

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.