Contrasting DNB Bank ASA (OTCMKTS:DNBBY) and Columbia Banking System (NASDAQ:COLB)

Columbia Banking System (NASDAQ:COLB) and DNB Bank ASA (OTCMKTS:DNBBY) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional and Insider Ownership

92.5% of Columbia Banking System shares are held by institutional investors. 0.6% of Columbia Banking System shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Columbia Banking System 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
Columbia Banking System	$3.21 billion	2.55	$550.00 million	$2.51	11.52
DNB Bank ASA	$19.14 billion	2.62	$4.20 billion	$2.80	11.54

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

Volatility & Risk

Columbia Banking System has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, DNB Bank ASA has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Dividends

Columbia Banking System pays an annual dividend of $1.48 per share and has a dividend yield of 5.1%. DNB Bank ASA pays an annual dividend of $1.42 per share and has a dividend yield of 4.4%. Columbia Banking System pays out 59.0% of its earnings in the form of a dividend. DNB Bank ASA pays out 50.7% 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. Columbia Banking System has increased its dividend for 4 consecutive years. Columbia Banking System is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Columbia Banking System and DNB Bank ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Columbia Banking System	19.96%	11.33%	1.31%
DNB Bank ASA	21.34%	13.97%	1.06%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Columbia Banking System and DNB Bank ASA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Banking System	0	8	5	0	2.38
DNB Bank ASA	2	4	2	0	2.00

Columbia Banking System currently has a consensus price target of $33.42, suggesting a potential upside of 15.55%. Given Columbia Banking System’s stronger consensus rating and higher probable upside, analysts plainly believe Columbia Banking System is more favorable than DNB Bank ASA.

Summary

DNB Bank ASA beats Columbia Banking System on 9 of the 17 factors compared between the two stocks.

About Columbia Banking System

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.

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.