DBS Group (OTCMKTS:DBSDY – Get Rating) and Northwest Bancshares (NASDAQ:NWBI – Get Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
This table compares DBS Group and Northwest Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
0.2% of DBS Group shares are held by institutional investors. Comparatively, 61.2% of Northwest Bancshares shares are held by institutional investors. 1.0% of Northwest Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Northwest Bancshares has a consensus price target of $12.17, indicating a potential downside of 6.89%. Given Northwest Bancshares’ higher possible upside, analysts clearly believe Northwest Bancshares is more favorable than DBS Group.
Risk & Volatility
DBS Group has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Northwest Bancshares has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.
Earnings & Valuation
This table compares DBS Group and Northwest Bancshares’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DBS Group||$11.89 billion||4.84||$5.06 billion||N/A||N/A|
|Northwest Bancshares||$561.40 million||2.95||$154.32 million||$1.11||11.77|
DBS Group has higher revenue and earnings than Northwest Bancshares.
DBS Group pays an annual dividend of $3.98 per share and has a dividend yield of 4.5%. Northwest Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 6.1%. Northwest Bancshares pays out 72.1% of its earnings in the form of a dividend. Northwest Bancshares has increased its dividend for 13 consecutive years. Northwest Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Northwest Bancshares beats DBS Group on 8 of the 15 factors compared between the two stocks.
About DBS Group
DBS Group Holdings Ltd provides financial products and services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. The Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. The Others segment offers Islamic banking services. The company was founded in 1968 and is headquartered in Singapore.
About Northwest Bancshares
Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market deposit, term certificate, and individual retirement accounts. It also offers loan products comprising one-to-four-family residential real estate loans and loans collateralized by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including automobile loans, sales finance loans, unsecured personal loans, credit card loans, and loans secured by deposit accounts. The company also offers investment management and trust services. As of December 31, 2021, it operated 170 community-banking locations in Pennsylvania, Western New York, Eastern Ohio, and Indiana. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.
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