Critical Analysis: DNB Bank ASA (OTCMKTS:DNBBY) versus Banco Comercial Portugues (OTCMKTS:BPCGY)

Banco Comercial Portugues (OTCMKTS:BPCGY) and DNB Bank ASA (OTCMKTS:DNBBY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Banco Comercial Portugues and DNB Bank ASA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Comercial Portugues	$5.82 billion	2.72	$980.79 million	$0.91	11.73
DNB Bank ASA	$19.14 billion	2.45	$4.20 billion	$2.77	10.94

DNB Bank ASA has higher revenue and earnings than Banco Comercial Portugues. DNB Bank ASA is trading at a lower price-to-earnings ratio than Banco Comercial Portugues, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Banco Comercial Portugues has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, DNB Bank ASA has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Banco Comercial Portugues and DNB Bank ASA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Comercial Portugues	0	1	0	1	3.00
DNB Bank ASA	1	4	2	1	2.38

Profitability

This table compares Banco Comercial Portugues and DNB Bank ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Comercial Portugues	N/A	N/A	N/A
DNB Bank ASA	21.06%	14.63%	1.11%

Dividends

Banco Comercial Portugues pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. DNB Bank ASA pays an annual dividend of $1.42 per share and has a dividend yield of 4.7%. Banco Comercial Portugues pays out 17.6% of its earnings in the form of a dividend. DNB Bank ASA pays out 51.3% 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.

Summary

DNB Bank ASA beats Banco Comercial Portugues on 9 of the 13 factors compared between the two stocks.

About Banco Comercial Portugues

Banco Comercial Português, S.A., a private sector bank, engages in the provision of various banking and financial products and services in Portugal and internationally. It operates through Retail Banking; Companies, Corporate & Investment Banking; Private Banking; Foreign Business; and Other segments. It offers a range of financial products and services, including current accounts, payment systems, savings and investment products, private banking, asset management, and investment banking services, such as mortgage loans, personal loans, commercial banking, leasing, factoring and insurance, and others. The company is also involved in the provision of investment fund and real estate management, e-commerce, web portal, real estate investment fund, trade finance, trust, consulting, brokerage, marketing, and real estate services, as well as internet, telephone, and mobile banking services. Banco Comercial Português, S.A. was incorporated in 1985 and is based in Porto, Portugal.

About DNB Bank ASA

DNB Bank ASA provides financial services for individual and business customers in Norway and internationally. The company offers savings, current, and pension accounts; fixed rate and security deposits; home and cabin mortgages, car and consumer loans, business loans, and refinancing; car, house, home contents, travel, personal, and non-life insurance product; payment services; and online and mobile banking services, as well as cards. It also provides overdraft facilities; leasing services; factoring, supply chain, and receivable purchase financing services; bank guarantee, secure trading, documentary collection, and letter of credit services; investment banking services, such as mergers and acquisition, equity and debt capital market, shares and securities, mutual funds and trading, and bonds and commodities; and private financing, as well as equity trading, foreign exchange, interest rates, and risk advisory services. In addition, the company offers treasury management, working capital, trade finance, auto lease and equipment financing, and corporate finance services, as well as act as an estate agents. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.