Financial Comparison: Woori Bank (NYSE:WF) versus Danske Bank (OTCMKTS:DNKEY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Woori Bank	13.34%	8.46%	0.55%
Danske Bank	40.38%	13.14%	0.62%

Risk and Volatility

Woori Bank has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Danske Bank has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Institutional & Insider Ownership

3.4% of Woori Bank shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Woori Bank and Danske Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woori Bank	$16.27 billion	0.94	$2.16 billion	$8.65	7.23
Danske Bank	$8.61 billion	4.98	$3.49 billion	$2.17	12.11

Danske Bank has lower revenue, but higher earnings than Woori Bank. Woori 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Woori Bank and Danske Bank, as reported by MarketBeat.com.

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

Dividends

Woori Bank pays an annual dividend of $1.67 per share and has a dividend yield of 2.7%. Danske Bank pays an annual dividend of $1.58 per share and has a dividend yield of 6.0%. Woori Bank pays out 19.3% of its earnings in the form of a dividend. Danske Bank pays out 72.8% 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.

Summary

Danske Bank beats Woori Bank on 9 of the 14 factors compared between the two stocks.

About Woori Bank

Woori Financial Group Inc., a financial holding company, operates as a commercial bank that provides a range of financial products and services to individuals, corporations, and small- and medium-sized enterprises in Korea. It operates through Banking, Credit Card, Capital, Investment Banking, and Others segments. The company offers savings, demand, installment, and time deposits; certificates of deposit; repurchase instruments; and working capital, facilities, general purpose household, mortgage, and home equity loans. It also provides debit and credit cards, cash services, card loans, and related services; lease financing; and securities operation, sale of financial instruments, project financing, and other related solutions. In addition, the company offers credit purchase, cash advance, credit card loans, foreign exchange services and dealing, import and export-related services, offshore lending, syndicated loans and foreign currency securities investment, investment trust products, bancassurance, and private equity funds. Further, it is involved in the real estate trust, system software development and maintenance, financing, credit information, securities investment and trading, derivatives trading, trust, asset securitization, investment and international banking, money transfer, and other services. Additionally, the company offers automated telephone, internet, and mobile banking services; and trust management, trustee, and custodian services. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.

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.