Westpac Banking (NYSE:WBK) and NORDEA Bk AB SW/S (OTCMKTS:NRDBY) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Earnings and Valuation
This table compares Westpac Banking and NORDEA Bk AB SW/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Westpac Banking||$28.76 billion||2.43||$6.16 billion||$1.74||11.64|
|NORDEA Bk AB SW/S||$13.11 billion||2.22||$3.63 billion||N/A||N/A|
Westpac Banking has higher revenue and earnings than NORDEA Bk AB SW/S.
This table compares Westpac Banking and NORDEA Bk AB SW/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NORDEA Bk AB SW/S||21.62%||7.07%||0.39%|
Westpac Banking pays an annual dividend of $1.29 per share and has a dividend yield of 6.4%. NORDEA Bk AB SW/S pays an annual dividend of $0.52 per share and has a dividend yield of 7.2%. Westpac Banking pays out 74.1% of its earnings in the form of a dividend. Westpac Banking has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
0.6% of Westpac Banking shares are held by institutional investors. Comparatively, 0.1% of NORDEA Bk AB SW/S shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of recent ratings for Westpac Banking and NORDEA Bk AB SW/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NORDEA Bk AB SW/S||0||2||0||0||2.00|
Volatility & Risk
Westpac Banking has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, NORDEA Bk AB SW/S has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Westpac Banking beats NORDEA Bk AB SW/S on 8 of the 13 factors compared between the two stocks.
Westpac Banking Company Profile
Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. It operates through five divisions: Consumer Bank, Business Bank, BT Financial Group, Westpac Institutional Bank, and Westpac New Zealand. It offers everyday banking, savings, term deposit, moving to Australia, under 21 and student, business one, community solutions one, not-for-profit savings, and foreign currency accounts; term and farm management deposits; debit, credit, and travel money cards; home, personal, investment, small business, and commercial loans; and equipment, automotive, cash flow, property, insurance premium, corporate and structured finance, and trade and supply chain financing services. It also provides home and content, landlord, car, travel, boat, caravan and trailer, life, credit card and loan repayment, income protection, business, farm pack, person income, and business overheads insurance products; superannuation and retirement products; investment portfolios; instalment warrants; and trading, financial advisory, wealth, foreign currency exchange, international payment, cash flow management, international trade, and import and export services. In addition, it offers industry specific banking and treasury services; other services, such as emergency cash, online and telephone banking, ATMs, unclaimed money, travel center, margin lending, and banking services to migrants moving to Australia; and mobile wallets. Further, it provides capital advisory and fund management, transactional and private banking, and financial market services. It serves individuals; micro, small, and medium enterprises; and commercial, corporate, institutional, and government customers. The company was formerly known as Bank of New South Wales and changed its name to Westpac Banking Corporation in October 1982. The company was founded in 1817 and is headquartered in Sydney, Australia.
NORDEA Bk AB SW/S Company Profile
Nordea Bank Abp provides various banking products and services for personal customers, small and medium businesses, and corporates and financial institutions in Europe. It operates through Personal Banking, Commercial & Business Banking, Wholesale Banking, and Wealth Management segments. It offers personal banking products comprising corporate and household deposits; and household mortgage and consumer loans, as well as loans to corporates. The company also provides business banking services; transaction banking services consisting of cards, trade finance, cash management, and mobile- and ecommerce; and investment credits, working capital, and consumer credits. In addition, it offers a range of financing, cash management and payment services, investment banking, capital markets products, and securities services; manages customers' assets and provides financial advice to high net worth individuals and institutional investors; and provides a range of pension, endowment, and risk products. Further, the company offers trade finance services; and online and mobile banking services. It operates approximately 450 branches. The company was founded in 1820 and is headquartered in Helsinki, Finland.
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