VersaBank (NASDAQ: VBNK – Get Rating) and Nordea Bank Abp (OTCMKTS: NRDBY – Get Rating) are both finance companies, but which company is superior? We’ll compare the two companies based on their dividend strength, institutional ownership, valuation, earnings, analyst recommendations, risk and return.
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of VersaBank and Nordea Bank Abp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|VersaBank||$75.30 million||2.96||$17.80 million||$0.74||10.97|
|Nordea Bank Abp||$11.62 billion||3.15||$4.53 billion||$0.96||9.94|
Nordea Bank Abp has higher revenue and profit than VersaBank. Nordea Bank Abp trades at a lower price-to-earnings ratio than VersaBank, indicating that it is currently the more affordable of the two stocks.
VersaBank pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Nordea Bank Abp pays an annual dividend of $0.47 per share and has a dividend yield of 4.9%. VersaBank pays 10.8% of its profits as a dividend. Nordea Bank Abp distributes 49.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years.
This is a summary of recent recommendations for VersaBank and Nordea Bank Abp, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Nordea Bank Abp||1||4||5||0||2.40|
Nordea Bank Abp has a consensus target price of $52.66, suggesting a potential upside of 451.99%. Given the likely higher upside of Nordea Bank Abp, analysts clearly believe that Nordea Bank Abp is more favorable than VersaBank.
This table compares the net margins, return on equity and return on assets of VersaBank and Nordea Bank Abp.
|Net margins||Return on equity||return on assets|
|Nordea Bank Abp||34.47%||10.87%||0.65%|
Institutional and insider ownership
24.3% of VersaBank shares are held by institutional investors. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock is poised for long-term growth.
Nordea Bank Abp beats VersaBank on 9 out of 15 factors compared between the two stocks.
About VersaBank (Get a rating)
VersaBank, a Schedule I chartered bank, offers various banking products and services in Canada. The Company offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, daily interest savings accounts and tax-free savings accounts, as well as deposit insurance. It also provides lending services, including point-of-sale financing which involves the purchase of loans and leases from financial companies operating in various sectors; and commercial banking services including commercial real estate, public sector/infrastructure financing, condominium financing and residential mortgages. The company was previously known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.
About Nordea Bank Abp (Get a rating)
Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark and internationally. It operates through Personal Banking, Business Banking, Corporates and Institutions, and Asset and Wealth Management segments. The Personal Banking segment provides various financial services to residential customers through internet and mobile banking, telephone, online meetings and branches. The Business Banking segment offers payment, cash management, cards, working capital management and financing solutions to businesses and individuals. The Corporate and Institutional segment provides financing, cash and payment management, investment and securities banking, and capital market products to corporate and institutional customers. The Asset and Wealth Management segment provides investment, savings and risk management solutions to high net worth individuals and institutional investors. This segment also offers life and retirement products and services. The company was founded in 1820 and is headquartered in Helsinki, Finland.
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