Head to Head Comparison: Chesapeake Financial Shares (OTCMKTS:CPKF) and Danske Bank A/S (OTCMKTS:DNKEY)

Danske Bank A/S (OTCMKTS:DNKEY – Get Rating) and Chesapeake Financial Shares (OTCMKTS:CPKF – Get Rating) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Dividends

Danske Bank A/S pays an annual dividend of $0.10 per share and has a dividend yield of 1.0%. Chesapeake Financial Shares pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. Danske Bank A/S pays out -26.3% of its earnings in the form of a dividend. Chesapeake Financial Shares pays out 16.1% 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.

Insider and Institutional Ownership

3.6% of Chesapeake Financial Shares shares are owned by institutional investors. 39.5% of Chesapeake Financial Shares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Danske Bank A/S and Chesapeake Financial Shares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank A/S	2	1	3	0	2.17
Chesapeake Financial Shares	0	0	0	0	N/A

Volatility & Risk

Danske Bank A/S has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Chesapeake Financial Shares has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Profitability

This table compares Danske Bank A/S and Chesapeake Financial Shares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank A/S	-10.69%	-2.62%	-0.11%
Chesapeake Financial Shares	25.62%	20.89%	1.32%

Earnings & Valuation

This table compares Danske Bank A/S and Chesapeake Financial Shares’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank A/S	$5.83 billion	N/A	-$717.63 million	($0.38)	-26.66
Chesapeake Financial Shares	$69.47 million	1.47	$17.63 million	$3.73	5.82

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

Summary

Chesapeake Financial Shares beats Danske Bank A/S on 9 of the 13 factors compared between the two stocks.

About Danske Bank A/S

(Get Rating)

Danske Bank A/S engages in the provision of services in the fields of banking, mortgage finance, insurance, pension, real-estate brokerage, asset management and trading in fixed income products, foreign exchange, and equities. It operates through the following segments: Personal and Business Customers, Large Corporates and Institutions, Danica Pension, Northern Ireland, Non-core, and Group Functions. The Personal and Business Customers segment serves personal customers and small and medium-sized corporates across all Nordic markets. The Large Corporates and Institutions segment deals with large corporate and institutional customers. The Danica Pension offers pension schemes, life insurance policies, and health insurance policies in Denmark and Norway. The Northern Ireland segment provides services to retail and commercial customers through a network of branches and business centers in Northern Ireland alongside digital channels. The Non-core segment includes customer segments that are no longer considered part of the core business. The Group Functions segment represents the group treasury, group support functions and eliminations, including the elimination of returns on own shares

About Chesapeake Financial Shares

(Get Rating)

Chesapeake Financial Shares, Inc. operates as a bank holding company, which engages in the provision of personal, business products, and banking services through Chesapeake Bank and Chesapeake Investment Group, Inc. It offers checking, savings, credit of deposits, mortgages, mobile and online banking, electronic services comprising an internet branch, business cash management program, brokerage, trust and estate management services. The company was founded in 1900 and is headquartered in Kilmarnock, VA.