Hope Bancorp (NASDAQ:HOPE) and DANSKE Bk A/S/S (OTCMKTS:DNKEY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Profitability

This table compares Hope Bancorp and DANSKE Bk A/S/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hope Bancorp 23.43% 9.81% 1.28%
DANSKE Bk A/S/S 41.47% 11.79% 0.54%

Volatility and Risk

Hope Bancorp has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, DANSKE Bk A/S/S has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Insider and Institutional Ownership

90.0% of Hope Bancorp shares are held by institutional investors. Comparatively, 0.2% of DANSKE Bk A/S/S shares are held by institutional investors. 5.1% of Hope Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Hope Bancorp and DANSKE Bk A/S/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hope Bancorp 0 6 0 0 2.00
DANSKE Bk A/S/S 0 0 0 0 N/A

Hope Bancorp currently has a consensus target price of $18.10, suggesting a potential upside of 25.78%. Given Hope Bancorp’s higher possible upside, equities analysts plainly believe Hope Bancorp is more favorable than DANSKE Bk A/S/S.

Dividends

Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.9%. DANSKE Bk A/S/S pays an annual dividend of $0.56 per share and has a dividend yield of 5.6%. Hope Bancorp pays out 45.9% of its earnings in the form of a dividend. DANSKE Bk A/S/S pays out 33.3% 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. DANSKE Bk A/S/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Hope Bancorp and DANSKE Bk A/S/S’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hope Bancorp $638.52 million 2.93 $139.44 million $1.22 11.80
DANSKE Bk A/S/S $7.31 billion 2.54 $3.17 billion $1.68 5.98

DANSKE Bk A/S/S has higher revenue and earnings than Hope Bancorp. DANSKE Bk A/S/S is trading at a lower price-to-earnings ratio than Hope Bancorp, indicating that it is currently the more affordable of the two stocks.

Hope Bancorp Company Profile

Hope Bancorp, Inc. is a holding company. Its products and services include certificate of deposit, online banking, bill payment, mobile banking, credits card and mortgage loans. The company was founded in February 2002 and is headquartered in Los Angeles, CA.

DANSKE Bk A/S/S Company Profile

Danske Bank A/S provides banking products and services to various customers. The company's Personal Banking segment offers advisory, property financing, leasing, insurance, and pension services to personal and private banking customers. Its Business Banking segment provides advisory, financing, investing, cash management, and risk management services to small and medium-sized businesses. The company's Corporates & Institutions segment offers strategic advice, financial solutions and products in capital markets, fixed income, currencies and commodities, and transaction banking to corporate and institutional customers. Its Wealth Management segment provides life insurance, health and accident insurance, unit-linked, pension savings, wealth and asset management, and private banking products and services to private individuals, companies, and institutional investors. The company's Northern Ireland segment offers various banking services. Danske Bank A/S also provides mortgage finance, real-estate brokerage, foreign exchange, and equity services, as well as trades in fixed income products. The company operates 280 branches in 8 countries. It has operations in Denmark, Finland, Sweden, Norway, Ireland, the United Kingdom, and internationally. Danske Bank A/S was founded in 1871 and is headquartered in Copenhagen, Denmark.

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