Hang Seng Bank (OTCMKTS:HSNGY) versus Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) Critical Comparison

Hang Seng Bank (OTCMKTS:HSNGY) and Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Dividends

Hang Seng Bank pays an annual dividend of $0.58 per share and has a dividend yield of 3.0%. Svenska Handelsbanken Ab Publ pays an annual dividend of $0.60 per share and has a dividend yield of 8.8%. Svenska Handelsbanken Ab Publ pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Hang Seng Bank and Svenska Handelsbanken Ab Publ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hang Seng Bank	N/A	N/A	N/A
Svenska Handelsbanken Ab Publ	15.97%	13.07%	0.70%

Valuation & Earnings

This table compares Hang Seng Bank and Svenska Handelsbanken Ab Publ”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hang Seng Bank	$8.63 billion	4.26	$2.36 billion	N/A	N/A
Svenska Handelsbanken Ab Publ	$17.44 billion	N/A	$2.60 billion	$0.61	11.11

Svenska Handelsbanken Ab Publ has higher revenue and earnings than Hang Seng Bank.

Volatility & Risk

Hang Seng Bank has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Hang Seng Bank and Svenska Handelsbanken Ab Publ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hang Seng Bank	1	2	0	0	1.67
Svenska Handelsbanken Ab Publ	2	5	0	0	1.71

Summary

Svenska Handelsbanken Ab Publ beats Hang Seng Bank on 8 of the 9 factors compared between the two stocks.

About Hang Seng Bank

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprises, and institutional customers in Hong Kong, the Mainland of China, and internationally. It operates through five segments: Wealth and Personal Banking, Commercial Banking, Global Banking, Global Markets, and Other. The company offers personal banking services, including current and savings accounts, time deposits, mortgages and personal loans, credit cards, and insurance, investment, and other wealth management services, as well as consumer lending and wealth management services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment services, and corporate wealth management services; general banking and transaction banking, corporate lending, deposits, and cash management services; and tailored solutions and services in foreign exchange, bullion, equities, fixed income, and securities financing, as well as manages the funding and liquidity position activities. In addition, the company offers retirement benefits, life assurance, fund management, and stock broking services, as well as index compilation and licensing; fund raising and sales; and asset management services. It operates service outlets in Hong Kong; branches in Macau and Singapore; and representative office in Taipei, as well as a network of outlets in the Mainland of China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited operates as a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

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.