Critical Comparison: Svenska Handelsbanken Ab Publ (SVNLY) and Its Competitors

by · The Markets Daily

Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY – Get Free Report) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Svenska Handelsbanken Ab Publ to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Profitability

This table compares Svenska Handelsbanken Ab Publ and its rivals’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Svenska Handelsbanken Ab Publ17.64%14.23%0.72%
Svenska Handelsbanken Ab Publ Competitors15.66%9.44%0.93%

Volatility & Risk

Svenska Handelsbanken Ab Publ has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ’s rivals have a beta of 0.52, suggesting that their average stock price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Svenska Handelsbanken Ab Publ and its rivals, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Svenska Handelsbanken Ab Publ31101.60
Svenska Handelsbanken Ab Publ Competitors7464301932775914652.35

As a group, “Banks” companies have a potential upside of 13.90%. Given Svenska Handelsbanken Ab Publ’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Svenska Handelsbanken Ab Publ has less favorable growth aspects than its rivals.

Dividends

Svenska Handelsbanken Ab Publ pays an annual dividend of $0.58 per share and has a dividend yield of 7.1%. Svenska Handelsbanken Ab Publ pays out 82.9% 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, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Svenska Handelsbanken Ab Publ lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

47.8% of shares of all “Banks” companies are owned by institutional investors. 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Svenska Handelsbanken Ab Publ and its rivals revenue, earnings per share (EPS) and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
Svenska Handelsbanken Ab Publ$21.75 billion$2.42 billion11.67
Svenska Handelsbanken Ab Publ Competitors$9.95 billion$2.42 billion17.42

Svenska Handelsbanken Ab Publ has higher revenue and earnings than its rivals. Svenska Handelsbanken Ab Publ is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Svenska Handelsbanken Ab Publ rivals beat Svenska Handelsbanken Ab Publ on 10 of the 15 factors compared.

About Svenska Handelsbanken Ab Publ

(Get Free Report)

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.