Analyzing Swedbank (OTCMKTS:SWDBY) and The Competition

Swedbank (OTCMKTS: SWDBY) is one of 63 public companies in the “Commercial banks, not elsewhere classified” industry, but how does it weigh in compared to its rivals? We will compare Swedbank to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Profitability

This table compares Swedbank and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Swedbank 37.97% 15.29% 0.83%
Swedbank Competitors 18.88% 11.41% 1.02%

Risk and Volatility

Swedbank has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Swedbank’s rivals have a beta of 0.94, meaning that their average stock price is 6% less volatile than the S&P 500.

Valuation and Earnings

This table compares Swedbank and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Swedbank $6.13 billion $2.27 billion 10.96
Swedbank Competitors $14.41 billion $2.17 billion 13.80

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

Analyst Ratings

This is a breakdown of recent ratings for Swedbank and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Swedbank 1 1 1 0 2.00
Swedbank Competitors 478 1531 1482 69 2.32

As a group, “Commercial banks, not elsewhere classified” companies have a potential upside of 17.71%. Given Swedbank’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Swedbank has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

0.1% of Swedbank shares are owned by institutional investors. Comparatively, 23.8% of shares of all “Commercial banks, not elsewhere classified” companies are owned by institutional investors. 12.8% of shares of all “Commercial banks, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Swedbank pays an annual dividend of $1.28 per share and has a dividend yield of 5.7%. Swedbank pays out 62.7% of its earnings in the form of a dividend. As a group, “Commercial banks, not elsewhere classified” companies pay a dividend yield of 2.9% and pay out 38.3% of their earnings in the form of a dividend.

Summary

Swedbank rivals beat Swedbank on 11 of the 15 factors compared.

About Swedbank

Swedbank AB (publ) provides various banking products and services to private, corporate, and organizational customers. The company operates through Swedish Banking, Baltic Banking, and Large Corporates & Institutions segments. It offers deposit and lending products; guarantees; non-life insurance products; brokerage and other securities; real estate brokerage; and asset management, financing, and life insurance and pension services. The company also offers investments and trading services, including currency, fixed income, and equity trading services, as well as structured products; advisory and investment banking products and services, such as corporate financing, debt capital market, and loans and syndication services; and transaction banking services, such as cash management, trade finance, securities, commercial payments, account, and clearing and settlement services. In addition, it provides private banking products and services, such as salary accounts, credit and debit cards, mortgage finance, and investment advice, as well as trades in derivatives; and telephone, Internet, and mobile banking services. The company has 218 branches in Sweden, 34 branches in Estonia, 36 in Latvia, and 63 in Lithuania. It also operates in Norway, Finland, Denmark, Luxembourg, China, the United States, and South Africa. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.

Receive News & Ratings for Swedbank Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Swedbank and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply