Head to Head Comparison: Regions Financial (NYSE:RF) & Park National (NYSE:PRK)

Park National (NYSE:PRK) and Regions Financial (NYSE:RF) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Risk and Volatility

Park National has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Regions Financial has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Valuation & Earnings

This table compares Park National and Regions Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park National	$564.30 million	4.88	$126.73 million	$8.45	20.16
Regions Financial	$9.37 billion	2.39	$1.89 billion	$1.94	12.71

Regions Financial has higher revenue and earnings than Park National. Regions Financial is trading at a lower price-to-earnings ratio than Park National, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Park National and Regions Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park National	0	2	0	0	2.00
Regions Financial	1	6	11	0	2.56

Park National currently has a consensus price target of $130.00, indicating a potential downside of 23.69%. Regions Financial has a consensus price target of $27.67, indicating a potential upside of 12.23%. Given Regions Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Regions Financial is more favorable than Park National.

Profitability

This table compares Park National and Regions Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park National	22.09%	12.05%	1.44%
Regions Financial	20.20%	12.83%	1.32%

Institutional & Insider Ownership

62.7% of Park National shares are owned by institutional investors. Comparatively, 79.4% of Regions Financial shares are owned by institutional investors. 2.7% of Park National shares are owned by company insiders. Comparatively, 0.3% of Regions Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Park National pays an annual dividend of $4.24 per share and has a dividend yield of 2.5%. Regions Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.1%. Park National pays out 50.2% of its earnings in the form of a dividend. Regions Financial pays out 51.5% 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. Regions Financial has raised its dividend for 12 consecutive years. Regions Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Regions Financial beats Park National on 10 of the 17 factors compared between the two stocks.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.

About Regions Financial

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services. It serves corporate, middle market, and commercial real estate developers and investors. The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, consumer credit cards, and other consumer loans, as well as deposits. The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities. It also provides investment and insurance products; low-income housing tax credit corporate fund syndication services; and other specialty financing services. The company was founded in 1971 and is headquartered in Birmingham, Alabama.