Contrasting Shore Bancshares (NASDAQ:SHBI) and Danske Bank A/S (OTCMKTS:DNKEY)

Shore Bancshares (NASDAQ:SHBIGet Rating) and Danske Bank A/S (OTCMKTS:DNKEYGet Rating) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Dividends

Shore Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 2.5%. Danske Bank A/S pays an annual dividend of $0.10 per share and has a dividend yield of 1.3%. Shore Bancshares pays out 41.0% of its earnings in the form of a dividend. Danske Bank A/S pays out 9.0% 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.

Profitability

This table compares Shore Bancshares and Danske Bank A/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shore Bancshares 17.67% 7.19% 0.69%
Danske Bank A/S 30.22% 7.09% 0.32%

Risk and Volatility

Shore Bancshares has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Danske Bank A/S has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

56.2% of Shore Bancshares shares are held by institutional investors. 11.1% of Shore Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Shore Bancshares and Danske Bank A/S’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shore Bancshares $83.67 million 4.57 $15.37 million $1.17 16.47
Danske Bank A/S $6.77 billion 1.89 $2.06 billion $1.11 6.68

Danske Bank A/S has higher revenue and earnings than Shore Bancshares. Danske Bank A/S is trading at a lower price-to-earnings ratio than Shore Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Shore Bancshares and Danske Bank A/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shore Bancshares 0 0 1 0 3.00
Danske Bank A/S 2 4 1 0 1.86

Shore Bancshares presently has a consensus target price of $22.00, suggesting a potential upside of 14.17%. Given Shore Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe Shore Bancshares is more favorable than Danske Bank A/S.

Summary

Shore Bancshares beats Danske Bank A/S on 10 of the 15 factors compared between the two stocks.

Shore Bancshares Company Profile (Get Rating)

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers non-deposit products, such as mutual funds and annuities, and discount brokerage services; and trust, asset management, and financial planning services. Further, the company provides merchant credit card clearing, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; direct deposit of payroll; and automatic teller machine (ATM) services. It operates 29 full service branches, 30 ATMs, and 5 loan production offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne's County, Caroline County, Talbot County, Dorchester County, Anne Arundel County, and Worcester County in Maryland; Kent County, Delaware; and Accomack County, Virginia. The company was founded in 1876 and is headquartered in Easton, Maryland.

Danske Bank A/S Company Profile (Get Rating)

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers corporate finance services, investment and debt capital markets products, merger and acquisition advisory services, equity and loan capital markets services, international payments, cash management, credit transfer, and supply chain and trade finance services. It also provides solutions for sustainable finance, derivatives, fixed income, foreign exchange, equities trading, cash flow forecast, collection services, financial platform, export finance, letter of credit, liquidity management, factoring, working capital management, guarantees, and in-house bank. In addition, it offers custody, depositary, data management, post-trade, bank and middle office, collateral management, and derivatives clearing services. The company has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. Danske Bank A/S was founded in 1871 and is headquartered in Copenhagen, Denmark.

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