CHESAPEAKE FINL/SH (OTCMKTS:CPKF) and Zions Bancorporation NA (NASDAQ:ZION) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for CHESAPEAKE FINL/SH and Zions Bancorporation NA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CHESAPEAKE FINL/SH 0 0 0 0 N/A
Zions Bancorporation NA 0 15 5 1 2.33

Zions Bancorporation NA has a consensus price target of $41.32, indicating a potential upside of 21.52%. Given Zions Bancorporation NA’s higher probable upside, analysts plainly believe Zions Bancorporation NA is more favorable than CHESAPEAKE FINL/SH.

Institutional & Insider Ownership

3.2% of CHESAPEAKE FINL/SH shares are held by institutional investors. Comparatively, 95.0% of Zions Bancorporation NA shares are held by institutional investors. 39.5% of CHESAPEAKE FINL/SH shares are held by insiders. Comparatively, 1.8% of Zions Bancorporation NA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares CHESAPEAKE FINL/SH and Zions Bancorporation NA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CHESAPEAKE FINL/SH $58.26 million 1.55 $11.40 million $2.29 7.99
Zions Bancorporation NA $3.25 billion 1.72 $816.00 million $4.33 7.85

Zions Bancorporation NA has higher revenue and earnings than CHESAPEAKE FINL/SH. Zions Bancorporation NA is trading at a lower price-to-earnings ratio than CHESAPEAKE FINL/SH, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CHESAPEAKE FINL/SH has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Zions Bancorporation NA has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Dividends

CHESAPEAKE FINL/SH pays an annual dividend of $0.50 per share and has a dividend yield of 2.7%. Zions Bancorporation NA pays an annual dividend of $1.36 per share and has a dividend yield of 4.0%. CHESAPEAKE FINL/SH pays out 21.8% of its earnings in the form of a dividend. Zions Bancorporation NA pays out 31.4% 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. Zions Bancorporation NA has increased its dividend for 7 consecutive years. Zions Bancorporation NA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares CHESAPEAKE FINL/SH and Zions Bancorporation NA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CHESAPEAKE FINL/SH 19.73% 11.27% 1.25%
Zions Bancorporation NA 19.32% 9.36% 0.92%

Summary

Zions Bancorporation NA beats CHESAPEAKE FINL/SH on 12 of the 17 factors compared between the two stocks.

CHESAPEAKE FINL/SH Company Profile

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for corporate and individual clients in Virginia. It operates through Commercial, Commercial – Real Estate, Consumer – Non Real Estate, and Residential – Real Estate segments. The company offers interest and noninterest checking, savings, and money market accounts, as well as certificates of deposit. It also provides mortgage loans, single-family residential and residential construction loans, lines of credit, and consumer loans; and commercial loans, including owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans. In addition, the company offers merchant processing services, accounts receivable financing, wealth management and trust, and cash management services. It operates through 15 branches, including 4 in Northern Neck, 3 in Middle Peninsula, 5 in Williamsburg, and 3 in Richmond. The company was founded in 1900 and is based in Kilmarnock, Virginia.

Zions Bancorporation NA Company Profile

Zions Bancorporation, National Association provides various banking and related services primarily in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers community banking services, such as small and medium-sized business and corporate banking; commercial and residential development, construction, and term lending; retail banking; treasury cash management and related products and services; residential mortgage servicing and lending services; trust and wealth management services; capital markets services, including municipal finance advisory and underwriting; and investment services. It also offers personal banking services to individuals, including home mortgages, bankcards, other installment loans, home equity lines of credit, checking accounts, savings accounts, certificates of deposit of various types and maturities, trust services, safe deposit facilities, and Internet and mobile banking services. In addition, the company provides self-directed brokerage services; small business administration lending and secondary market agricultural real estate mortgage loans; corporate trust services for municipalities; and bond transfer, stock transfer, and escrow services. As of December 31, 2018, it operated 433 branches. 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.

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