Analyzing Svenska Handelsbanken Ab Publ (SVNLY) & Its Rivals

Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Svenska Handelsbanken Ab Publ to similar businesses based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares Svenska Handelsbanken Ab Publ and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Svenska Handelsbanken Ab Publ	$21.75 billion	$2.42 billion	11.61
Svenska Handelsbanken Ab Publ Competitors	$37.93 billion	$2.42 billion	21.36

Svenska Handelsbanken Ab Publ’s peers have higher revenue, but lower earnings than Svenska Handelsbanken Ab Publ. Svenska Handelsbanken Ab Publ is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

47.8% of shares of all “Banks” companies are owned by institutional investors. 9.7% of shares of all “Banks” companies are owned by company insiders. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Svenska Handelsbanken Ab Publ	17.64%	14.23%	0.72%
Svenska Handelsbanken Ab Publ Competitors	15.64%	9.43%	0.93%

Analyst Recommendations

This is a breakdown of current recommendations for Svenska Handelsbanken Ab Publ and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Svenska Handelsbanken Ab Publ	3	1	1	0	1.60
Svenska Handelsbanken Ab Publ Competitors	7492	30246	27845	1488	2.35

As a group, “Banks” companies have a potential upside of 14.61%. Given Svenska Handelsbanken Ab Publ’s peers stronger consensus rating and higher possible upside, analysts clearly believe Svenska Handelsbanken Ab Publ has less favorable growth aspects than its peers.

Volatility and Risk

Svenska Handelsbanken Ab Publ has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ’s peers have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Dividends

Svenska Handelsbanken Ab Publ pays an annual dividend of $0.58 per share and has a dividend yield of 7.1%. Svenska Handelsbanken Ab Publ pays out 82.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Svenska Handelsbanken Ab Publ lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Svenska Handelsbanken Ab Publ peers beat Svenska Handelsbanken Ab Publ on 11 of the 15 factors compared.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB, commonly known as Handelsbanken, is a Swedish universal bank founded in Stockholm in 1871. It provides banking and financial services to individuals, businesses and institutions. Its services include deposit accounts, payments, mortgages and other lending, savings and investment products, and wealth management. The bank also serves corporate clients with financing and cash-management services. Handelsbanken is based in Sweden and has banking operations in the United Kingdom, Norway and the Netherlands.