Contrasting Dime Community Bancshares (NASDAQ:DCOM) & Zions Bancorporation, National Association (NASDAQ:ZION)

Zions Bancorporation, National Association (NASDAQ:ZION) and Dime Community Bancshares (NASDAQ:DCOM) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Zions Bancorporation, National Association and Dime Community Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zions Bancorporation, National Association	1	15	3	0	2.11
Dime Community Bancshares	0	0	4	1	3.20

Zions Bancorporation, National Association presently has a consensus price target of $60.71, suggesting a potential upside of 18.38%. Dime Community Bancshares has a consensus price target of $36.40, suggesting a potential upside of 25.04%. Given Dime Community Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Dime Community Bancshares is more favorable than Zions Bancorporation, National Association.

Earnings & Valuation

This table compares Zions Bancorporation, National Association and Dime Community Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zions Bancorporation, National Association	$3.13 billion	2.42	$784.00 million	$4.95	10.36
Dime Community Bancshares	$314.10 million	4.04	$29.08 million	$0.59	49.34

Zions Bancorporation, National Association has higher revenue and earnings than Dime Community Bancshares. Zions Bancorporation, National Association is trading at a lower price-to-earnings ratio than Dime Community Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Zions Bancorporation, National Association pays an annual dividend of $1.72 per share and has a dividend yield of 3.4%. Dime Community Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. Zions Bancorporation, National Association pays out 34.7% of its earnings in the form of a dividend. Dime Community Bancshares pays out 169.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Zions Bancorporation, National Association has raised its dividend for 12 consecutive years.

Insider & Institutional Ownership

76.8% of Zions Bancorporation, National Association shares are held by institutional investors. Comparatively, 75.3% of Dime Community Bancshares shares are held by institutional investors. 2.2% of Zions Bancorporation, National Association shares are held by company insiders. Comparatively, 9.1% of Dime Community Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Zions Bancorporation, National Association has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Dime Community Bancshares has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Zions Bancorporation, National Association and Dime Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zions Bancorporation, National Association	15.70%	13.65%	0.89%
Dime Community Bancshares	4.50%	5.43%	0.46%

Summary

Zions Bancorporation, National Association beats Dime Community Bancshares on 10 of the 18 factors compared between the two stocks.

About Zions Bancorporation, National Association

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 Dime Community Bancshares

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, it offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was founded in 1910 and is headquartered in Hauppauge, New York.