DANSKE Bk A/S/S (NYSE: SNV) and Synovus Financial (NYSE:SNV) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
0.2% of DANSKE Bk A/S/S shares are held by institutional investors. Comparatively, 81.0% of Synovus Financial shares are held by institutional investors. 1.5% of Synovus Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for DANSKE Bk A/S/S and Synovus Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DANSKE Bk A/S/S||0||0||0||0||N/A|
Synovus Financial has a consensus target price of $51.15, suggesting a potential upside of 2.19%. Given Synovus Financial’s higher probable upside, analysts clearly believe Synovus Financial is more favorable than DANSKE Bk A/S/S.
Valuation and Earnings
This table compares DANSKE Bk A/S/S and Synovus Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DANSKE Bk A/S/S||$7.31 billion||3.70||$3.17 billion||$1.68||8.73|
|Synovus Financial||$1.51 billion||3.90||$275.47 million||$2.53||19.79|
DANSKE Bk A/S/S has higher revenue and earnings than Synovus Financial. DANSKE Bk A/S/S is trading at a lower price-to-earnings ratio than Synovus Financial, indicating that it is currently the more affordable of the two stocks.
DANSKE Bk A/S/S pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Synovus Financial pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. DANSKE Bk A/S/S pays out 33.3% of its earnings in the form of a dividend. Synovus Financial pays out 39.5% 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. Synovus Financial has increased its dividend for 4 consecutive years. DANSKE Bk A/S/S is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares DANSKE Bk A/S/S and Synovus Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DANSKE Bk A/S/S||41.47%||11.84%||0.56%|
Risk and Volatility
DANSKE Bk A/S/S has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500. Comparatively, Synovus Financial has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Synovus Financial beats DANSKE Bk A/S/S on 11 of the 16 factors compared between the two stocks.
DANSKE Bk A/S/S Company Profile
Danske Bank A/S provides banking products and services to various customers. The company's Personal Banking segment offers advisory, property financing, leasing, insurance, and pension services to personal and private banking customers. Its Business Banking segment provides advisory, financing, investing, cash management, and risk management services to small and medium-sized businesses. The company's Corporates & Institutions segment offers strategic advice, financial solutions and products in capital markets, fixed income, currencies and commodities, and transaction banking to corporate and institutional customers. Its Wealth Management segment provides life insurance, health and accident insurance, unit-linked, pension savings, wealth and asset management, and private banking products and services to private individuals, companies, and institutional investors. The company's Northern Ireland segment offers various banking services. Danske Bank A/S also provides mortgage finance, real-estate brokerage, foreign exchange, and equity services, as well as trades in fixed income products. The company operates 280 branches in 8 countries. It has operations in Denmark, Finland, Sweden, Norway, Ireland, the United Kingdom, and internationally. Danske Bank A/S was founded in 1871 and is headquartered in Copenhagen, Denmark.
Synovus Financial Company Profile
Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides various financial products and services. It offers integrated financial services, including commercial and retail banking, financial management, insurance, and mortgage services. The company's commercial banking services comprise cash management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans. Its retail banking services consist of accepting various types of demand and savings deposits; mortgage, installment, and other retail loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfer services; Internet based banking services; and bank credit card services, including MasterCard and Visa services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, asset management and financial planning services, and individual investment advice on equity and other securities, as well as trust services. As of December 31, 2017, it operated through 28 divisions and 250 branches in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Financial Corporation was founded in 1888 and is headquartered in Columbus, Georgia.
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