Red River Bancshares (NASDAQ:RRBI) and KeyCorp (NYSE:KEY) Critical Comparison

Red River Bancshares (NASDAQ:RRBI) and KeyCorp (NYSE:KEY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Red River Bancshares and KeyCorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	3	0	1	2.50
KeyCorp	0	7	12	1	2.70

Red River Bancshares presently has a consensus price target of $106.00, indicating a potential upside of 5.71%. KeyCorp has a consensus price target of $46.33, indicating a potential upside of 131.95%. Given KeyCorp’s stronger consensus rating and higher probable upside, analysts plainly believe KeyCorp is more favorable than Red River Bancshares.

Risk and Volatility

Red River Bancshares has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, KeyCorp has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Earnings and Valuation

This table compares Red River Bancshares and KeyCorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$169.85 million	3.88	$42.76 million	$6.95	14.43
KeyCorp	$11.23 billion	1.90	$1.83 billion	$1.72	11.61

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

Profitability

This table compares Red River Bancshares and KeyCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	26.25%	12.47%	1.39%
KeyCorp	17.83%	11.23%	1.05%

Dividends

Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. KeyCorp pays an annual dividend of $0.82 per share and has a dividend yield of 4.1%. Red River Bancshares pays out 14.4% 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. Red River Bancshares has raised its dividend for 3 consecutive years.

Institutional & Insider Ownership

27.6% of Red River Bancshares shares are owned by institutional investors. Comparatively, 79.7% of KeyCorp shares are owned by institutional investors. 16.6% of Red River Bancshares shares are owned by company insiders. Comparatively, 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 is poised for long-term growth.

Summary

Red River Bancshares beats KeyCorp on 9 of the 17 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

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.