KeyCorpPrincipal Financial

KeyCorp vs Principal Financial

This page compares KeyCorp and Principal Financial Group Inc., examining business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial adv...

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Community Banking Catalyst

Community Banking Catalyst

This carefully selected group of stocks features regional and community banks positioned to benefit from the FDIC's proposed simplification of the Community Reinvestment Act. Our professional analysts identified these financial institutions as potentially gaining from reduced regulatory burdens, which could boost lending capacity and shareholder value.

Published: July 14, 2025

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Banks

Banks

These carefully selected banking stocks represent the financial institutions that keep the global economy running. Our professional analysts have handpicked these companies for their role in the digital transformation of financial services and their potential for steady returns.

Published: May 28, 2025

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Investment Analysis

KeyCorp

Pros

  • KeyCorp reported a significant earnings beat in Q3 2025 with EPS of $0.41 surpassing forecasts by nearly 8%, demonstrating profitability improvement.
  • The bank achieved year-over-year revenue growth of 17% adjusted for portfolio repositioning and positive operating leverage, indicating improved operational efficiency.
  • KeyCorp maintains a strong dividend track record of 54 consecutive years and offers an attractive dividend yield of approximately 4.6%.

Considerations

  • Despite earnings beat, KeyCorp's stock price declined 3.5% pre-market after Q3 2025 results, reflecting investor concerns about future challenges.
  • Return on equity remains low at 0.15%, significantly below the 10-year average of 8.69%, suggesting subdued profitability relative to historical levels.
  • Institutional selling pressure noted over the past 24 months may indicate concerns from large investors about the company’s medium-term outlook.
Principal Financial

Pros

  • Principal Financial Group holds a diversified portfolio with over 2,200 holdings and assets under management exceeding $178 billion, indicating strong scale and investment breadth.
  • Top equity holdings include leading technology companies such as Microsoft, Apple, Nvidia, and Amazon, providing exposure to growth sectors.
  • The company has diversified its recent new positions to include lifestyle, energy infrastructure, and technology sectors, signaling proactive portfolio management.

Considerations

  • Principal Financial Group’s large and varied holdings across multiple industries may expose it to sector-specific volatility and economic cyclicality.
  • Limited recent public financial performance data suggests a need for closer monitoring of operational efficiency and profitability trends.
  • The company’s exposure to pipeline, social services, and repair services industries may present regulatory and demand-related risks.

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