Home > Comparison > Financial Services > CFG vs KEY
The strategic rivalry between Citizens Financial Group, Inc. and KeyCorp shapes the competitive landscape of regional banking in the United States. Citizens operates a broad retail and commercial banking model with a strong branch network across 14 states. KeyCorp emphasizes a diversified commercial and consumer banking approach with a slightly smaller footprint but extensive financial services. This analysis evaluates which bank offers a superior risk-adjusted return for diversified portfolios amid evolving sector dynamics.
Table of contents
Companies Overview
Citizens Financial Group and KeyCorp stand as pivotal regional banks shaping the U.S. financial landscape.
Citizens Financial Group, Inc.: Regional Banking Powerhouse
Citizens Financial Group dominates the regional banking sector with a dual focus on Consumer and Commercial Banking. Its core revenue stems from deposit products, lending services, and wealth management solutions. In 2026, the company emphasizes digital platforms and tailored financial products to deepen client engagement across 14 states and the District of Columbia.
KeyCorp: Comprehensive Regional Bank
KeyCorp operates as a diversified regional bank, generating income through retail deposits, loans, and a broad spectrum of commercial and advisory services. Its 2026 strategy prioritizes expanding capital markets and wealth management offerings, supported by a network of nearly 1,000 branches in 15 states, blending traditional banking with technology-driven services.
Strategic Collision: Similarities & Divergences
Both banks share a commitment to retail and commercial banking, yet Citizens leans more on expanding digital consumer services, while KeyCorp emphasizes capital markets and advisory growth. Their primary battleground lies in middle-market commercial banking and wealth management. Investors face distinct risk profiles: Citizens focuses on tech-enabled retail growth, KeyCorp on diversified financial solutions.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Citizens Financial Group, Inc. (CFG) | KeyCorp (KEY) |
|---|---|---|
| Revenue | 11.1B | 11.2B |
| Cost of Revenue | 3.37B | 4.22B |
| Operating Expenses | 5.45B | 4.66B |
| Gross Profit | 7.78B | 6.97B |
| EBITDA | 2.69B | 2.32B |
| EBIT | 2.33B | 2.30B |
| Interest Expense | 3.81B | 3.75B |
| Net Income | 1.83B | 1.83B |
| EPS | 3.90 | 1.66 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison uncovers which bank drives superior efficiency and profitability through its core operations.
Citizens Financial Group, Inc. Analysis
CFG’s revenue peaked at 12.3B in 2024 but declined 9.7% to 11.1B in 2025. Its gross margin remains robust near 70%, reflecting excellent cost control. Net income fell over the five years yet surged 21% last year to 1.83B, lifting net margin to a healthy 16.4%. EBIT growth of 23% signals improving operational momentum despite top-line pressure.
KeyCorp Analysis
KEY’s revenue jumped 23.6% in 2025 to 11.2B, maintaining strong growth over the last five years. Gross margin at 62.3% and EBIT margin near 20.6% show solid profitability. Net income rebounded sharply from a 2024 loss to 1.83B, doubling net margin over one year. EPS soared 575%, underscoring a powerful turnaround and expanding operational leverage.
Growth Surge vs. Margin Resilience
KEY’s comeback from negative earnings to strong profit growth contrasts with CFG’s steadier but slower net income recovery. CFG boasts superior gross margin and consistent net margin expansion, signaling disciplined cost management. KEY delivers striking revenue and EPS momentum, reflecting aggressive growth. For investors, CFG’s margin stability appeals to risk-averse profiles, while KEY suits those chasing rapid earnings improvement.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Citizens Financial Group, Inc. (CFG) | KeyCorp (KEY) |
|---|---|---|
| ROE | 6.96% | 8.97% |
| ROIC | 4.25% | 5.83% |
| P/E | 13.76 | 12.36 |
| P/B | 0.96 | 1.11 |
| Current Ratio | 1.04 | 0.77 |
| Quick Ratio | 1.04 | 0.77 |
| D/E | 0.43 | 0.54 |
| Debt-to-Assets | 4.98% | 5.97% |
| Interest Coverage | 0.61 | 0.61 |
| Asset Turnover | 0.049 | 0.061 |
| Fixed Asset Turnover | 12.18 | 17.82 |
| Payout ratio | 40.5% | 49.1% |
| Dividend yield | 2.94% | 3.97% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, uncovering hidden risks and revealing operational excellence in clear numeric terms.
Citizens Financial Group, Inc. (CFG)
CFG shows moderate profitability with a 6.96% ROE, lagging behind its cost of capital at 14.07%, signaling inefficiency in capital deployment. The stock trades at a reasonable P/E of 13.76 and a P/B below 1, suggesting it is undervalued. A 2.94% dividend yield rewards shareholders, underlining a steady income focus.
KeyCorp (KEY)
KEY posts a higher ROE of 8.97%, yet it also falls short of its 14.27% WACC, reflecting capital allocation challenges. Valuation metrics show a slightly cheaper P/E of 12.36 but a pricier P/B at 1.11, indicating modest premium. KEY offers a 3.97% dividend yield, emphasizing income generation amidst mixed operational signals.
Balanced Valuation Meets Dividend Stability
CFG offers a better balance of valuation and shareholder return stability with a favorable ratio profile. KEY’s slightly higher profitability and dividend yield come with elevated risks and a neutral overall ratio stance. Conservative investors might prefer CFG’s steadier fundamentals, while those seeking income with some risk may lean toward KEY.
Which one offers the Superior Shareholder Reward?
I see Citizens Financial Group (CFG) and KeyCorp (KEY) both pay dividends but differ in yield and payout discipline. CFG yields 2.9% with a 40.5% payout ratio, balancing dividends with buybacks. KEY yields 4.0% with a 49.1% payout, but weaker free cash flow coverage signals risk. CFG’s consistent buybacks enhance shareholder returns sustainably. KEY’s higher yield is attractive but less supported by free cash flow and recent volatility. I conclude CFG offers a more reliable total return profile in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the core financial DNA and strategic trade-offs of Citizens Financial Group and KeyCorp:
Citizens Financial Group edges KeyCorp in discounted cash flow (4 vs. 3), signaling stronger future cash flow potential. Both firms match evenly in return on equity and assets (3 each), showing similar operational efficiency. Debt-to-equity and valuation scores align identically, indicating comparable financial risk and market pricing. Overall, Citizens exhibits a slight advantage in cash flow valuation, while KeyCorp maintains a balanced profile without relying on a single strength.
Bankruptcy Risk: Solvency Showdown
Both Citizens Financial Group and KeyCorp fall deep within the distress zone by Altman Z-Score standards, with scores of 0.28 and 0.07 respectively. This signals heightened bankruptcy risk, demanding cautious scrutiny of their long-term resilience in this cycle:
Financial Health: Quality of Operations
Both firms share a Piotroski F-Score of 7, reflecting strong financial health and operational quality. Neither exhibits red flags in profitability, leverage, or liquidity metrics, supporting a confident stance on their internal financial robustness:
How are the two companies positioned?
This section dissects the operational DNA of CFG and KEY by comparing revenue distribution across segments and their internal strengths and weaknesses. The goal is to confront their economic moats and identify the more resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Citizens Financial Group and KeyCorp diversify their income streams and where their primary sector bets lie:
Citizens Financial Group anchors its revenue in Consumer Banking ($3.5B in 2017) and Commercial Banking ($1.9B), showing a clear sector focus. In contrast, KeyCorp reveals a more diversified mix in 2024, with significant contributions from Investment Banking ($521M), Trust Services ($518M), Cards ($331M), and Service Charges ($261M). CFG’s concentration signals infrastructure dominance yet heightens exposure risk. KEY’s spread across segments suggests ecosystem lock-in and greater resilience against sector shocks.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Citizens Financial Group, Inc. (CFG) and KeyCorp (KEY):
CFG Strengths
- Favorable net margin at 16.42%
- Strong fixed asset turnover at 12.18
- Favorable dividend yield of 2.94%
- Low debt-to-assets ratio at 4.98%
- Favorable PE and PB ratios indicating market valuation
KEY Strengths
- Favorable net margin at 16.35%
- Higher fixed asset turnover at 17.82
- Higher dividend yield at 3.97%
- Favorable PE and PB ratios
- Favorable debt-to-assets ratio at 5.97%
CFG Weaknesses
- Unfavorable ROE at 6.96% below cost of capital
- ROIC at 4.25% lower than WACC of 14.07%
- Low interest coverage ratio at 0.61
- Asset turnover low at 0.05
- Neutral current ratio at 1.04
KEY Weaknesses
- Unfavorable ROE at 8.97% below WACC of 14.27%
- Interest coverage weak at 0.61
- Low current and quick ratios at 0.77 indicate liquidity risk
- Asset turnover low at 0.06
- Debt to equity neutral at 0.54
The comparison shows both banks maintain solid profitability margins and attractive yields, but each struggles with returns on equity and capital efficiency. CFG’s liquidity is more stable, while KEY faces pressure on short-term solvency. Both must address capital allocation to improve investor returns.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat shields long-term profits from relentless competition erosion. Without it, market share and pricing power quickly erode:
Citizens Financial Group, Inc. (CFG): Branch Network & Service Breadth Moat
CFG’s moat centers on its extensive branch network and diversified commercial banking services. This drives stable margins and strong gross profitability. However, declining ROIC signals weakening capital efficiency. New digital products may bolster its moat, but competition pressures persist in 2026.
KeyCorp (KEY): Customer Relationships & Product Synergy Moat
KEY leverages deep customer relationships and integrated financial solutions to sustain competitive strength. Its rapidly growing revenue and EBIT show operational momentum. Yet, like CFG, KEY faces declining ROIC, risking future value creation. Expanding tech-driven offerings could deepen its moat if executed well.
Branch Network vs. Customer Intimacy: Who Defends Better?
Both banks suffer declining ROIC and value destruction, reflecting intense regional banking competition. CFG’s physical footprint is broader, but KEY’s growing revenue signals stronger market engagement. I see KEY as slightly better positioned to defend and evolve its moat in 2026.
Which stock offers better returns?
Citizens Financial Group and KeyCorp both show strong price gains over the past year, with notable acceleration in upward trends and distinct trading volume patterns.
Trend Comparison
Citizens Financial Group’s stock rose 83.51% over the past 12 months, showing a bullish trend with accelerating momentum and higher volatility (7.49 std deviation). The price peaked at 62.98 and bottomed at 33.14.
KeyCorp’s stock increased 44.24% over the past 12 months, also bullish with accelerating price gains but lower volatility (2.0 std deviation). The highest price reached 21.52, and the lowest was 13.36.
CFG outperformed KEY with nearly double the percentage gain over the year, driven by stronger acceleration and higher buyer dominance in recent trading sessions.
Target Prices
Analysts present a moderately optimistic outlook for Citizens Financial Group and KeyCorp with solid upside potential.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Citizens Financial Group, Inc. | 60 | 80 | 69.46 |
| KeyCorp | 18 | 25 | 23.38 |
The consensus target prices suggest both banks could appreciate from current levels. CFG’s target median exceeds its $62.98 price, signaling room for growth. KEY’s consensus also sits above its $21.52 market price, indicating positive analyst expectations.
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How do institutions grade them?
The following tables summarize the latest grades from reputable financial institutions for both companies:
Citizens Financial Group, Inc. Grades
This table presents recent grade updates from leading financial analysts for Citizens Financial Group, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Hold | 2026-01-26 |
| Citigroup | Maintain | Buy | 2026-01-26 |
| Argus Research | Maintain | Buy | 2026-01-23 |
| RBC Capital | Maintain | Outperform | 2026-01-22 |
| B of A Securities | Maintain | Buy | 2026-01-22 |
| Morgan Stanley | Maintain | Overweight | 2026-01-22 |
| Keefe, Bruyette & Woods | Maintain | Outperform | 2026-01-22 |
| DA Davidson | Maintain | Buy | 2026-01-22 |
| TD Cowen | Maintain | Buy | 2026-01-22 |
| Raymond James | Downgrade | Outperform | 2026-01-07 |
KeyCorp Grades
Below is the summary of recent rating actions from recognized analysts for KeyCorp:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Hold | 2026-01-26 |
| TD Cowen | Maintain | Buy | 2026-01-07 |
| Baird | Downgrade | Underperform | 2026-01-06 |
| Barclays | Maintain | Equal Weight | 2026-01-05 |
| Truist Securities | Maintain | Hold | 2025-12-22 |
| Keefe, Bruyette & Woods | Maintain | Outperform | 2025-12-17 |
| DA Davidson | Maintain | Buy | 2025-12-10 |
| DA Davidson | Maintain | Buy | 2025-10-17 |
| Truist Securities | Maintain | Hold | 2025-10-17 |
| UBS | Maintain | Buy | 2025-10-07 |
Which company has the best grades?
Citizens Financial Group consistently receives stronger grades, including multiple Buy and Outperform ratings from top-tier firms. KeyCorp’s ratings are more mixed, with some downgrades and a broader range of Hold to Buy grades. Investors may interpret Citizens’ generally higher marks as a signal of more robust institutional confidence.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Citizens Financial Group, Inc. (CFG)
- Faces intense regional banking competition with a strong branch network in 14 states and DC.
KeyCorp (KEY)
- Competes in 15 states with a slightly smaller branch footprint but higher ATM count, increasing consumer access.
2. Capital Structure & Debt
CFG
- Maintains conservative leverage with debt-to-equity at 0.43 and favorable debt-to-assets at 4.98%.
KEY
- Slightly higher leverage at 0.54 debt-to-equity, though debt-to-assets remains favorable at 5.97%.
3. Stock Volatility
CFG
- Beta of 1.086 suggests moderate market sensitivity, with a price range of $32.6–$65.88.
KEY
- Beta of 1.082 also indicates moderate volatility, with a narrower price range of $12.73–$22.07.
4. Regulatory & Legal
CFG
- Operates under strict banking regulations with exposure in multiple states, increasing compliance complexity.
KEY
- Similar regulatory environment with broad geographic reach; regulatory costs and risks remain a persistent challenge.
5. Supply Chain & Operations
CFG
- Robust operational infrastructure with 1,200 branches and 3,300 ATMs, supported by digital platforms.
KEY
- Operates 999 branches and 1,317 ATMs; invests in digital and telephone banking to enhance customer service.
6. ESG & Climate Transition
CFG
- Increasing ESG pressure to align lending with climate goals; regional banks face scrutiny on sustainable finance.
KEY
- Faces similar ESG demands; must balance community development financing with climate risk management.
7. Geopolitical Exposure
CFG
- Primarily domestic U.S. exposure reduces geopolitical risk but limits international growth potential.
KEY
- Also focused on U.S. markets, mitigating geopolitical risk but limiting diversification opportunities.
Which company shows a better risk-adjusted profile?
CFG’s stronger capital structure and higher ratio of favorable financial metrics suggest a more resilient balance sheet. KEY’s weaker liquidity ratios and slightly higher leverage pose moderate risks. Both firms share distress-zone Altman Z-scores, signaling financial fragility. CFG’s broader branch network and favorable debt metrics justify greater confidence amid regional banking pressures.
Final Verdict: Which stock to choose?
Citizens Financial Group’s superpower lies in its ability to generate steady cash flow with a favorable net margin and disciplined capital structure. Its main point of vigilance is a weakening return on invested capital, signaling potential long-term value erosion. This stock suits portfolios aiming for resilient income with moderate growth exposure.
KeyCorp’s strategic moat is its strong operational leverage and higher return on equity, supporting an efficient use of invested capital despite some volatility. It offers a somewhat safer profile than Citizens, with a higher dividend yield and solid income quality. This makes it appealing for investors seeking growth at a reasonable price combined with income stability.
If you prioritize stable cash generation and income, Citizens Financial Group appears compelling due to its consistent operating efficiency. However, if you seek growth backed by a stronger return on equity and a more robust dividend, KeyCorp offers better stability. Both face challenges in sustaining profitability, so prudence and risk management remain essential.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Citizens Financial Group, Inc. and KeyCorp to enhance your investment decisions:
