Reviewing Zions Bancorporation, N.A. (NASDAQ:ZION) & Columbia Banking System (NASDAQ:COLB)

Zions Bancorporation, N.A. (NASDAQ:ZION) and Columbia Banking System (NASDAQ:COLB) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Profitability

This table compares Zions Bancorporation, N.A. and Columbia Banking System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zions Bancorporation, N.A.	18.19%	13.70%	1.03%
Columbia Banking System	17.11%	11.40%	1.26%

Earnings and Valuation

This table compares Zions Bancorporation, N.A. and Columbia Banking System”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zions Bancorporation, N.A.	$4.94 billion	1.79	$899.00 million	$6.00	9.99
Columbia Banking System	$3.21 billion	2.74	$550.00 million	$2.26	13.03

Zions Bancorporation, N.A. has higher revenue and earnings than Columbia Banking System. Zions Bancorporation, N.A. is trading at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

76.8% of Zions Bancorporation, N.A. shares are held by institutional investors. Comparatively, 92.5% of Columbia Banking System shares are held by institutional investors. 2.2% of Zions Bancorporation, N.A. shares are held by company insiders. Comparatively, 0.7% of Columbia Banking System shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Zions Bancorporation, N.A. has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Dividends

Zions Bancorporation, N.A. pays an annual dividend of $1.80 per share and has a dividend yield of 3.0%. Columbia Banking System pays an annual dividend of $1.48 per share and has a dividend yield of 5.0%. Zions Bancorporation, N.A. pays out 30.0% of its earnings in the form of a dividend. Columbia Banking System pays out 65.5% 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, N.A. has increased its dividend for 12 consecutive years and Columbia Banking System has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for Zions Bancorporation, N.A. and Columbia Banking System, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zions Bancorporation, N.A.	1	15	4	1	2.24
Columbia Banking System	0	11	3	1	2.33

Zions Bancorporation, N.A. presently has a consensus target price of $63.16, suggesting a potential upside of 5.42%. Columbia Banking System has a consensus target price of $31.65, suggesting a potential upside of 7.52%. Given Columbia Banking System’s stronger consensus rating and higher probable upside, analysts clearly believe Columbia Banking System is more favorable than Zions Bancorporation, N.A..

Summary

Zions Bancorporation, N.A. beats Columbia Banking System on 10 of the 17 factors compared between the two stocks.

About Zions Bancorporation, N.A.

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 Columbia Banking System

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.