Comparing Raiffeisen Bank International (OTCMKTS:RAIFY) and Swedbank (OTCMKTS:SWDBY)

Swedbank (OTCMKTS:SWDBY) and Raiffeisen Bank International (OTCMKTS:RAIFY) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

Swedbank pays an annual dividend of SEK 1.48 per share and has a dividend yield of 4.0%. Raiffeisen Bank International pays an annual dividend of $0.18 per share and has a dividend yield of 1.3%. Swedbank pays out 50.0% of its earnings in the form of a dividend. Raiffeisen Bank International pays out 16.7% 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.

Profitability

This table compares Swedbank and Raiffeisen Bank International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swedbank	30.27%	15.50%	1.07%
Raiffeisen Bank International	10.91%	6.12%	0.65%

Risk and Volatility

Swedbank has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Raiffeisen Bank International has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Swedbank and Raiffeisen Bank International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swedbank	3	3	0	0	1.50
Raiffeisen Bank International	0	1	0	1	3.00

Earnings & Valuation

This table compares Swedbank and Raiffeisen Bank International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swedbank	$11.08 billion	3.77	$3.35 billion	SEK 2.96	12.53
Raiffeisen Bank International	$14.76 billion	1.21	$1.55 billion	$1.08	12.57

Swedbank has higher earnings, but lower revenue than Raiffeisen Bank International. Swedbank is trading at a lower price-to-earnings ratio than Raiffeisen Bank International, indicating that it is currently the more affordable of the two stocks.

Summary

Swedbank beats Raiffeisen Bank International on 7 of the 13 factors compared between the two stocks.

About Swedbank

Swedbank AB (publ) provides various banking products and services to private and corporate customers in Sweden, Estonia, Latvia, Lithuania, Norway, the United States, Finland, Denmark, Luxembourg, and China. The company operates through three business areas: Swedish Banking, Baltic Banking, and Corporates and Institutions. It offers savings accounts, mutual funds and insurance savings, pension savings, institutional asset management, and other savings and investment products; private residential lending, consumer financing, corporate lending, leasing, and other financing products, as well as trade finance and factoring services; and current accounts, cash handling, debit and credit cards, and card acquiring, as well as domestic, international, mobile, document, and other payment products. The company also provides equity trading, structured products, corporate finance, custody services, fixed income and currency trading, and other capital market products; and administrative services, treasury operations, real estate brokerage and management services, legal services, safe deposit boxes, and other services. In addition, it offers pension insurance and plan, life, endowment insurance, and personal insurance products; investment management, investment banking, and mortgage lending services; and transaction banking services comprising cash management, securities, account, and clearing and settlement services, as well as Internet and mobile banking services. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.