Critical Comparison: Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) vs. Bankinter (OTCMKTS:BKNIY)

Bankinter (OTCMKTS:BKNIY) and Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Profitability

This table compares Bankinter and Svenska Handelsbanken Ab Publ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bankinter	21.53%	16.76%	0.81%
Svenska Handelsbanken Ab Publ	15.97%	12.80%	0.68%

Earnings & Valuation

This table compares Bankinter and Svenska Handelsbanken Ab Publ”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bankinter	$5.44 billion	N/A	$1.03 billion	$1.26	13.25
Svenska Handelsbanken Ab Publ	$17.44 billion	N/A	$2.60 billion	$0.61	11.97

Svenska Handelsbanken Ab Publ has higher revenue and earnings than Bankinter. Svenska Handelsbanken Ab Publ is trading at a lower price-to-earnings ratio than Bankinter, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Bankinter and Svenska Handelsbanken Ab Publ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bankinter	1	6	0	0	1.86
Svenska Handelsbanken Ab Publ	2	5	0	0	1.71

Dividends

Bankinter pays an annual dividend of $0.47 per share and has a dividend yield of 2.8%. Svenska Handelsbanken Ab Publ pays an annual dividend of $0.60 per share and has a dividend yield of 8.2%. Bankinter pays out 37.3% of its earnings in the form of a dividend. Svenska Handelsbanken Ab Publ pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Bankinter has a beta of -0.18, indicating that its stock price is 118% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Summary

Bankinter beats Svenska Handelsbanken Ab Publ on 7 of the 11 factors compared between the two stocks.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.