Head-To-Head Comparison: Danske Bank (DNKEY) vs. The Competition

Danske Bank (OTCMKTS:DNKEY) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its rivals? We will compare Danske Bank to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

Danske Bank has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Danske Bank’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Institutional and Insider Ownership

48.0% of shares of all “Banks” companies are held by institutional investors. 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Danske Bank and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Danske Bank	$8.61 billion	$3.49 billion	11.49
Danske Bank Competitors	$37.92 billion	$2.42 billion	17.48

Danske Bank’s rivals have higher revenue, but lower earnings than Danske Bank. Danske Bank is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Danske Bank and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank	41.60%	14.40%	0.65%
Danske Bank Competitors	15.64%	9.43%	0.93%

Dividends

Danske Bank pays an annual dividend of $1.57 per share and has a dividend yield of 5.8%. Danske Bank pays out 66.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.0% and pay out 28.9% of their earnings in the form of a dividend. Danske Bank lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current recommendations for Danske Bank and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank	0	4	3	0	2.43
Danske Bank Competitors	7470	30199	27763	1466	2.35

As a group, “Banks” companies have a potential upside of 13.06%. Given Danske Bank’s rivals higher probable upside, analysts plainly believe Danske Bank has less favorable growth aspects than its rivals.

Summary

Danske Bank rivals beat Danske Bank on 9 of the 15 factors compared.

Danske Bank Company Profile

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.