Banco Latinoamericano de Comercio Exterior (NYSE:BLX) vs. Danske Bank (OTCMKTS:DNKEY) Critical Contrast

Banco Latinoamericano de Comercio Exterior (NYSE:BLX) and Danske Bank (OTCMKTS:DNKEY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares Banco Latinoamericano de Comercio Exterior and Danske Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Latinoamericano de Comercio Exterior	27.77%	14.36%	1.79%
Danske Bank	40.38%	13.14%	0.62%

Analyst Ratings

This is a summary of recent ratings and target prices for Banco Latinoamericano de Comercio Exterior and Danske Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Latinoamericano de Comercio Exterior	0	0	0	1	4.00
Danske Bank	0	2	4	0	2.67

Dividends

Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 4.5%. Danske Bank pays an annual dividend of $1.58 per share and has a dividend yield of 6.0%. Banco Latinoamericano de Comercio Exterior pays out 45.7% 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. Banco Latinoamericano de Comercio Exterior has increased its dividend for 2 consecutive years.

Earnings & Valuation

This table compares Banco Latinoamericano de Comercio Exterior and Danske Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Latinoamericano de Comercio Exterior	$836.85 million	2.69	$226.88 million	$6.02	10.05
Danske Bank	$8.61 billion	4.98	$3.49 billion	$2.17	12.11

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

Risk & Volatility

Banco Latinoamericano de Comercio Exterior has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Danske Bank has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. 0.2% of Banco Latinoamericano de Comercio Exterior shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Banco Latinoamericano de Comercio Exterior beats Danske Bank on 10 of the 17 factors compared between the two stocks.

About Banco Latinoamericano de Comercio Exterior

Banco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates in two segments, Commercial and Treasury. It offers bilateral loans; structured loans including syndicated and clubbed, such as acquisition and pre-export financing, A/B loan financing, bridge loans, and liability management; and project financing. The company also provides letter of credit comprising import and export letters of credit, and credit discounting and financing, as well as usance payable at sight; stand-by services; bank guarantees, including first demand and local guarantees; import and export documentary collection; irrevocable reimbursement undertaking; and canal tolls. In addition, it offers liquidity and investment solutions, such as time deposits, DDA accounts, Yankee certificate of deposits, and EMTN private placement services, as well as supply chain finance services. The company primarily serves financial institutions, corporations, and sovereigns and state-owned entities. Banco Latinoamericano de Comercio Exterior, S. A.was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. The company was founded in 1975 and is headquartered in Panama City, the Republic of Panama.

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.