Erste Group Bank (OTCMKTS:EBKDY) and Nordea Bank Abp (OTCMKTS:NRDBY) Head-To-Head Comparison

Erste Group Bank (OTCMKTS:EBKDYGet Rating) and Nordea Bank Abp (OTCMKTS:NRDBYGet Rating) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Insider and Institutional Ownership

0.3% of Erste Group Bank shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Erste Group Bank and Nordea Bank Abp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Erste Group Bank 20.99% 8.37% 0.64%
Nordea Bank Abp 34.47% 10.87% 0.65%

Volatility and Risk

Erste Group Bank has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Nordea Bank Abp has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Dividends

Erste Group Bank pays an annual dividend of $0.58 per share and has a dividend yield of 3.7%. Nordea Bank Abp pays an annual dividend of $0.47 per share and has a dividend yield of 4.9%. Erste Group Bank pays out 22.7% of its earnings in the form of a dividend. Nordea Bank Abp pays out 49.0% 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Erste Group Bank and Nordea Bank Abp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Erste Group Bank 0 1 7 0 2.88
Nordea Bank Abp 1 4 5 0 2.40

Erste Group Bank presently has a consensus price target of $45.67, suggesting a potential upside of 191.99%. Nordea Bank Abp has a consensus price target of $52.66, suggesting a potential upside of 445.70%. Given Nordea Bank Abp’s higher possible upside, analysts clearly believe Nordea Bank Abp is more favorable than Erste Group Bank.

Earnings & Valuation

This table compares Erste Group Bank and Nordea Bank Abp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Erste Group Bank $9.70 billion 1.39 $2.28 billion $2.55 6.13
Nordea Bank Abp $11.62 billion 3.15 $4.53 billion $0.96 10.05

Nordea Bank Abp has higher revenue and earnings than Erste Group Bank. Erste Group Bank is trading at a lower price-to-earnings ratio than Nordea Bank Abp, indicating that it is currently the more affordable of the two stocks.

Summary

Nordea Bank Abp beats Erste Group Bank on 9 of the 15 factors compared between the two stocks.

About Erste Group Bank (Get Rating)

Erste Group Bank AG provides a range of banking and other financial services to retail, corporate, real estate, and public sector customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management & Local Corporate Center, Savings Banks, and Group Corporate Center segments. It provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. The company also offers factoring and accounts receivable purchasing; investment, acquisition and leveraged, project, and commercial real estate finance; interest rate and currency hedging, letters of credit, documentary collections, and guarantees; account management, payments, digital-banking, and cash logistics services; equity interests and investments, revolving export credits lines, customer financing, and export guarantee; and loan syndication, and debt and equity capital market services. In addition, it provides cash management, trade finance, customer referral, markets execution, and custody and brokerage services. Further, the company offers corporate finance; portfolio management; trading and market; trade execution, market making, and short-term liquidity management; and asset/liability management services, as well as working capital and bridge loans. As of December 31, 2021, it operated 2,091 branches. The company was founded in 1819 and is headquartered in Vienna, Austria.

About Nordea Bank Abp (Get Rating)

Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates and Institutions, and Asset and Wealth Management segments. The Personal Banking segment provides various financial services to household customers through internet and mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and finance solutions to corporate and personal customers. The Large Corporates and Institutions segment provides financing, cash management and payment, investment banking, and securities services, as well as capital market products to corporate and institutional customers. The Asset and Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. This segment also offers life and pensions products and services. The company was founded in 1820 and is headquartered in Helsinki, Finland.

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