Danske Bank (OTCMKTS:DNKEY) and Bankinter (OTCMKTS:BKNIY) Financial Comparison

Danske Bank (OTCMKTS:DNKEY) and Bankinter (OTCMKTS:BKNIY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Danske Bank and Bankinter, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank	0	1	4	0	2.80
Bankinter	1	5	0	1	2.14

Earnings & Valuation

This table compares Danske Bank and Bankinter”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank	$8.18 billion	5.11	$3.43 billion	$2.02	12.40
Bankinter	$5.44 billion	N/A	$1.03 billion	$1.26	13.14

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

Profitability

This table compares Danske Bank and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank	40.42%	13.01%	0.61%
Bankinter	21.53%	16.76%	0.81%

Dividends

Danske Bank pays an annual dividend of $0.76 per share and has a dividend yield of 3.0%. Bankinter pays an annual dividend of $0.47 per share and has a dividend yield of 2.8%. Danske Bank pays out 37.6% of its earnings in the form of a dividend. Bankinter pays out 37.3% 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.

Volatility & Risk

Danske Bank has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.2, suggesting that its share price is 120% less volatile than the S&P 500.

Summary

Danske Bank beats Bankinter on 8 of the 13 factors compared between the two stocks.

About Danske Bank

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.