Contrasting DNB Bank ASA (DNBBY) & Its Peers

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

Insider & Institutional Ownership

48.0% of shares of all “Banks” companies are owned by institutional investors. 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for DNB Bank ASA and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNB Bank ASA	3	4	1	1	2.00
DNB Bank ASA Competitors	7497	30259	27867	1492	2.35

As a group, “Banks” companies have a potential upside of 14.67%. Given DNB Bank ASA’s peers stronger consensus rating and higher possible upside, analysts plainly believe DNB Bank ASA has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares DNB Bank ASA and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DNB Bank ASA	$19.14 billion	$4.20 billion	12.21
DNB Bank ASA Competitors	$9.95 billion	$2.42 billion	21.15

DNB Bank ASA has higher revenue and earnings than its peers. DNB Bank ASA is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

DNB Bank ASA has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, DNB Bank ASA’s peers have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Profitability

This table compares DNB Bank ASA and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNB Bank ASA	21.06%	13.69%	1.05%
DNB Bank ASA Competitors	15.62%	9.43%	0.93%

Dividends

DNB Bank ASA pays an annual dividend of $1.42 per share and has a dividend yield of 4.2%. DNB Bank ASA pays out 50.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. DNB Bank ASA lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

DNB Bank ASA peers beat DNB Bank ASA on 8 of the 15 factors compared.

About DNB Bank ASA

DNB Bank ASA is a Norwegian banking and financial services company and a central part of the DNB Group. Based in Oslo, it serves individuals, businesses, institutions and public-sector organizations, with Norway as its primary market and operations in selected international markets. The bank provides everyday banking services, including deposits, payment and card services, mortgages and other loans, as well as savings and investment products. Its business offerings include corporate lending, cash management, trade finance, advisory services and capital-markets products, with expertise serving industries such as shipping and energy.