First Hawaiian (NASDAQ:FHB) vs. Danske Bank (OTCMKTS:DNKEY) Head-To-Head Analysis

Danske Bank (OTCMKTS:DNKEY) and First Hawaiian (NASDAQ:FHB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank	$8.61 billion	5.49	$3.49 billion	$2.26	12.82
First Hawaiian	$1.17 billion	2.63	$276.27 million	$2.30	10.98

Danske Bank has higher revenue and earnings than First Hawaiian. First Hawaiian 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 Recommendations

This is a breakdown of recent ratings and recommmendations for Danske Bank and First Hawaiian, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank	0	2	4	1	2.86
First Hawaiian	3	6	2	0	1.91

First Hawaiian has a consensus price target of $30.25, suggesting a potential upside of 19.80%. Given First Hawaiian’s higher possible upside, analysts clearly believe First Hawaiian is more favorable than Danske Bank.

Insider & Institutional Ownership

97.6% of First Hawaiian shares are held by institutional investors. 0.7% of First Hawaiian shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Danske Bank	40.85%	13.80%	0.63%
First Hawaiian	24.41%	10.27%	1.19%

Dividends

Danske Bank pays an annual dividend of $1.57 per share and has a dividend yield of 5.4%. First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.1%. Danske Bank pays out 69.5% of its earnings in the form of a dividend. First Hawaiian pays out 45.2% 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.

Volatility & Risk

Danske Bank has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, First Hawaiian has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Summary

Danske Bank beats First Hawaiian on 10 of the 17 factors compared between the two stocks.

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.

About First Hawaiian

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.