NORDEA Bk AB SW/S (NRDBY) vs. Its Peers Critical Comparison

NORDEA Bk AB SW/S (OTCMKTS: NRDBY) is one of 66 publicly-traded companies in the “Commercial banks, not elsewhere classified” industry, but how does it weigh in compared to its peers? We will compare NORDEA Bk AB SW/S to related companies based on the strength of its risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Risk and Volatility

NORDEA Bk AB SW/S has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, NORDEA Bk AB SW/S’s peers have a beta of 0.86, meaning that their average share price is 14% less volatile than the S&P 500.

Earnings & Valuation

This table compares NORDEA Bk AB SW/S and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NORDEA Bk AB SW/S $13.11 billion $3.63 billion 9.36
NORDEA Bk AB SW/S Competitors $14.05 billion $2.68 billion 13.56

NORDEA Bk AB SW/S’s peers have higher revenue, but lower earnings than NORDEA Bk AB SW/S. NORDEA Bk AB SW/S is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

NORDEA Bk AB SW/S pays an annual dividend of $0.75 per share and has a dividend yield of 8.9%. NORDEA Bk AB SW/S pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commercial banks, not elsewhere classified” companies pay a dividend yield of 3.1% and pay out 38.1% of their earnings in the form of a dividend.

Institutional & Insider Ownership

0.1% of NORDEA Bk AB SW/S shares are held by institutional investors. Comparatively, 25.3% of shares of all “Commercial banks, not elsewhere classified” companies are held by institutional investors. 11.9% of shares of all “Commercial banks, not elsewhere classified” companies are held by 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.

Analyst Ratings

This is a breakdown of current ratings for NORDEA Bk AB SW/S and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NORDEA Bk AB SW/S 0 0 0 0 N/A
NORDEA Bk AB SW/S Competitors 786 1965 1668 82 2.23

As a group, “Commercial banks, not elsewhere classified” companies have a potential upside of 30.49%. Given NORDEA Bk AB SW/S’s peers higher possible upside, analysts clearly believe NORDEA Bk AB SW/S has less favorable growth aspects than its peers.

Profitability

This table compares NORDEA Bk AB SW/S and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NORDEA Bk AB SW/S 29.79% 9.42% 0.55%
NORDEA Bk AB SW/S Competitors 19.97% 11.67% 1.03%

Summary

NORDEA Bk AB SW/S peers beat NORDEA Bk AB SW/S on 9 of the 12 factors compared.

NORDEA Bk AB SW/S Company Profile

Nordea Bank Abp provides various banking products and services for personal customers, small and medium businesses, and corporates and financial institutions in Europe. It operates through Personal Banking, Commercial & Business Banking, Wholesale Banking, and Wealth Management segments. It offers personal banking products comprising corporate and household deposits; and household mortgage and consumer loans, as well as loans to corporates. The company also provides business banking services; transaction banking services consisting of cards, trade finance, cash management, and mobile- and ecommerce; and investment credits, working capital, and consumer credits. In addition, it offers a range of financing, cash management and payment services, investment banking, capital markets products, and securities services; manages customers' assets and provides financial advice to high net worth individuals and institutional investors; and provides a range of pension, endowment, and risk products. Further, the company offers trade finance services; and online and mobile banking services. It operates approximately 450 branches. The company was founded in 1820 and is headquartered in Helsinki, Finland.

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