Danske Bank (OTCMKTS:DNKEY) versus China CITIC Bank (OTCMKTS:CHCJY) Financial Analysis

Danske Bank (OTCMKTS:DNKEY) and China CITIC Bank (OTCMKTS:CHCJY) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for Danske Bank and China CITIC Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank	0	2	4	0	2.67
China CITIC Bank	0	1	0	0	2.00

Profitability

This table compares Danske Bank and China CITIC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank	40.38%	13.14%	0.62%
China CITIC Bank	20.39%	8.44%	0.71%

Valuation & Earnings

This table compares Danske Bank and China CITIC Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank	$8.61 billion	5.06	$3.49 billion	$2.17	12.29
China CITIC Bank	$49.07 billion	0.97	$9.82 billion	$3.38	5.77

China CITIC Bank has higher revenue and earnings than Danske Bank. China CITIC Bank is trading at a lower price-to-earnings ratio than Danske Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

Danske Bank pays an annual dividend of $1.58 per share and has a dividend yield of 5.9%. China CITIC Bank pays an annual dividend of $0.87 per share and has a dividend yield of 4.5%. Danske Bank pays out 72.8% of its earnings in the form of a dividend. China CITIC Bank pays out 25.7% 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.

Risk and Volatility

Danske Bank has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, China CITIC Bank has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Summary

Danske Bank beats China CITIC Bank on 8 of the 13 factors compared between the two stocks.

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.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.