Intesa Sanpaolo (OTCMKTS:ISNPY) versus Nordea Bank (OTCMKTS:NRDBY) Critical Comparison

Intesa Sanpaolo (OTCMKTS:ISNPY) and Nordea Bank (OTCMKTS:NRDBY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Intesa Sanpaolo and Nordea Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intesa Sanpaolo	22.05%	13.27%	0.95%
Nordea Bank	21.42%	15.38%	0.75%

Dividends

Intesa Sanpaolo pays an annual dividend of $1.68 per share and has a dividend yield of 4.2%. Nordea Bank pays an annual dividend of $0.47 per share and has a dividend yield of 2.7%. Intesa Sanpaolo pays out 50.5% of its earnings in the form of a dividend. Nordea Bank pays out 30.9% 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.

Insider & Institutional Ownership

1.2% of Intesa Sanpaolo shares are owned by institutional investors. Comparatively, 0.0% of Nordea Bank shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Intesa Sanpaolo and Nordea Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intesa Sanpaolo	$48.17 billion	2.44	$9.38 billion	$3.33	11.89
Nordea Bank	$26.50 billion	2.25	$5.47 billion	$1.52	11.36

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

Volatility and Risk

Intesa Sanpaolo has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Nordea Bank has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Intesa Sanpaolo and Nordea Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intesa Sanpaolo	0	2	2	2	3.00
Nordea Bank	2	1	2	0	2.00

Summary

Intesa Sanpaolo beats Nordea Bank on 12 of the 14 factors compared between the two stocks.

About Intesa Sanpaolo

Intesa Sanpaolo S.p.A. provides various financial products and services primarily in Italy. It operates through six segments: Banca dei Territori, IMI Corporate & Investment Banking, International Subsidiary Banks, Asset Management, Private Banking, and Insurance. The company offers lending and deposit products; private and commercial banking, corporate and transaction banking, structured finance, investment banking, public finance, and capital markets; industrial credit, leasing, and factoring; asset management; life and non-life insurance and pension products; asset and wealth management; private investments; and bancassurance products. The company serves individuals, small and medium-sized businesses, non-profit customers, corporates and financial institutions, public administration, private clients and high net worth individuals, institutional clientele, and other customers. Intesa Sanpaolo S.p.A. was founded in 1998 and is headquartered in Turin, Italy.

About Nordea Bank

Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates & Institutions, and Asset & Wealth Management segments. The Personal Banking segment provides various financial services to customers through mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and cards and finance solutions to corporate and personal customers. The Large Corporates & Institutions segment provides financing, cash management and payment, investment banking, capital market products, and securities services to corporate and institutional customers. The Asset & Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. It also offers account-based products, such as lending and deposit; project finance services, asset-based financing through leasing, hire purchase, and factoring, as well as sales to finance partners, such as dealers, vendors, and retailers; financial instruments or arrangement for financial instruments, including currencies, commodities, stocks, and bonds; and asset management, including investment funds, discretionary management, portfolio advice, equity trading, and pension accounts, as well as life insurance and pension products and services. Nordea Bank Abp was founded in 1820 and is headquartered in Helsinki, Finland.