Zions Bancorp focuses primarily on small and midsize businesses across its Western US footprint. We think its strategy of building on-the-ground relationships with SMB clients is sound. However, with roughly 80% of revenue coming from net interest income, Zions’ profitability is more sensitive to interest-rate movements and deposit performance than larger regional banks with more diversified fee income.
Zions’ footprint in the Western US has attractive growth potential, and the bank could grow its balance sheet faster than its peers.
In the event of a recession, Zions would face lower balance-sheet growth and higher credit costs. Commensurate interest rate cuts would badly hurt the bank, which is extremely interest rate sensitive.
|
Metric
|
ZION
|
JPM
|
BAC
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.69 | 15.00 | 12.32 |
Price/Book Value | 1.20 | 2.50 | 1.37 |
Price/Sales | 2.46 | 4.67 | 3.33 |
Price/Cash Flow | 8.57 | 10.24 | 7.91 |
|
Metric
|
ZION
|
JPM
|
BAC
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
ZION
|
JPM
|
BAC
|
|---|---|---|---|
Return on Assets (Normalized) | 1.35% | 1.31% | 1.07% |
Return on Equity (Normalized) | 16.96% | 17.86% | 13.31% |
Return on Invested Capital (Normalized) | — | — | — |
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1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
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Economic Moat
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United States