Danske Bank (OTCMKTS:DNKEY) and Bank of China (OTCMKTS:BACHY) Head-To-Head Review

Danske Bank (OTCMKTS:DNKEY) and Bank of China (OTCMKTS:BACHY) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Dividends

Danske Bank pays an annual dividend of $1.57 per share and has a dividend yield of 6.1%. Bank of China pays an annual dividend of $0.55 per share and has a dividend yield of 3.3%. Danske Bank pays out 72.4% of its earnings in the form of a dividend. Bank of China pays out 21.4% 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.

Valuation & Earnings

This table compares Danske Bank and Bank of China”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank	$8.61 billion	4.88	$3.49 billion	$2.17	11.85
Bank of China	$169.73 billion	1.27	$33.81 billion	$2.57	6.53

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

Profitability

This table compares Danske Bank and Bank of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank	40.38%	13.14%	0.62%
Bank of China	20.09%	7.81%	0.67%

Analyst Recommendations

This is a breakdown of recent recommendations for Danske Bank and Bank of China, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank	0	2	4	0	2.67
Bank of China	0	1	0	0	2.00

Risk and Volatility

Danske Bank has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Bank of China has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.

Summary

Danske Bank beats Bank of China on 8 of the 13 factors compared between the two stocks.

About Danske Bank

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.

About Bank of China

Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other. The Corporate Banking segment provides current accounts, deposits, overdrafts, loans, payments and settlements, trade-related products, and other credit facilities, as well as foreign currency, derivative, and wealth management products for corporate customers, government authorities, and financial institutions. The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers. The Treasury Operations segment offers foreign exchange transactions, customer-based interest rate, and foreign exchange derivative transactions, as well as money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services. The Insurance segment provides underwriting services for general and life insurance business, and insurance agency services. In addition, the company operates debt-to-equity swaps and other supporting, and aircraft and financial leasing business. The company was founded in 1912 and is headquartered in Beijing, China.