Danske Bank (DNKEY) vs. Its Competitors Financial Analysis

Danske Bank (OTCMKTS:DNKEY) is one of 920 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Danske Bank to related businesses based on the strength of its valuation, institutional ownership, risk, profitability, dividends, analyst recommendations and earnings.

Profitability

This table compares Danske Bank and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank	40.85%	13.80%	0.63%
Danske Bank Competitors	15.72%	9.53%	0.93%

Earnings & Valuation

This table compares Danske Bank and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Danske Bank	$8.61 billion	$3.49 billion	11.03
Danske Bank Competitors	$54.71 billion	$2.41 billion	16.82

Danske Bank’s competitors have higher revenue, but lower earnings than Danske Bank. Danske Bank is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Danske Bank has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Danske Bank’s competitors have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Danske Bank and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank	0	4	3	0	2.43
Danske Bank Competitors	7458	30171	27726	1451	2.35

As a group, “Banks” companies have a potential upside of 15.84%. Given Danske Bank’s competitors higher possible upside, analysts plainly believe Danske Bank has less favorable growth aspects than its competitors.

Dividends

Danske Bank pays an annual dividend of $1.58 per share and has a dividend yield of 6.1%. Danske Bank pays out 67.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.4% and pay out 28.9% of their earnings in the form of a dividend. Danske Bank lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

47.8% of shares of all “Banks” companies are owned by institutional investors. 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Danske Bank competitors beat Danske Bank on 9 of the 15 factors compared.

About Danske Bank

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.