Analyzing Sturgis Bancorp (OTCMKTS:STBI) & Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY)

Sturgis Bancorp (OTCMKTS:STBI) and Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Sturgis Bancorp and Svenska Handelsbanken AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sturgis Bancorp	12.18%	N/A	N/A
Svenska Handelsbanken AB (publ)	16.71%	14.12%	0.76%

Volatility & Risk

Sturgis Bancorp has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken AB (publ) has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Sturgis Bancorp and Svenska Handelsbanken AB (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sturgis Bancorp	0	0	0	0	N/A
Svenska Handelsbanken AB (publ)	0	0	1	0	3.00

Dividends

Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 4.1%. Svenska Handelsbanken AB (publ) pays an annual dividend of $0.37 per share and has a dividend yield of 7.5%. Sturgis Bancorp pays out 24.0% of its earnings in the form of a dividend. Svenska Handelsbanken AB (publ) pays out 53.6% 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.

Valuation and Earnings

This table compares Sturgis Bancorp and Svenska Handelsbanken AB (publ)’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturgis Bancorp	$49.68 million	0.72	$6.02 million	$2.83	5.92
Svenska Handelsbanken AB (publ)	$16.45 billion	1.19	$2.74 billion	$0.69	7.16

Svenska Handelsbanken AB (publ) has higher revenue and earnings than Sturgis Bancorp. Sturgis Bancorp is trading at a lower price-to-earnings ratio than Svenska Handelsbanken AB (publ), indicating that it is currently the more affordable of the two stocks.

Summary

Svenska Handelsbanken AB (publ) beats Sturgis Bancorp on 10 of the 12 factors compared between the two stocks.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.

About Svenska Handelsbanken AB (publ)

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.