Skandinaviska (OTCMKTS:SVKEF) versus Pinnacle Financial Partners (NYSE:PNFP) Critical Contrast

Skandinaviska (OTCMKTS:SVKEF) and Pinnacle Financial Partners (NYSE:PNFP) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

87.4% of Pinnacle Financial Partners shares are owned by institutional investors. 1.3% of Pinnacle Financial Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Skandinaviska and Pinnacle Financial Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skandinaviska	21.03%	15.43%	0.85%
Pinnacle Financial Partners	15.97%	11.33%	1.25%

Volatility and Risk

Skandinaviska has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Pinnacle Financial Partners has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Skandinaviska and Pinnacle Financial Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skandinaviska	0	6	0	0	2.00
Pinnacle Financial Partners	0	3	17	1	2.90

Pinnacle Financial Partners has a consensus target price of $119.65, indicating a potential upside of 18.97%. Given Pinnacle Financial Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Pinnacle Financial Partners is more favorable than Skandinaviska.

Valuation & Earnings

This table compares Skandinaviska and Pinnacle Financial Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skandinaviska	$23.09 billion	2.05	$3.17 billion	$1.85	12.57
Pinnacle Financial Partners	$3.32 billion	2.35	$641.86 million	$7.28	13.81

Skandinaviska has higher revenue and earnings than Pinnacle Financial Partners. Skandinaviska is trading at a lower price-to-earnings ratio than Pinnacle Financial Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Pinnacle Financial Partners beats Skandinaviska on 10 of the 15 factors compared between the two stocks.

About Skandinaviska

Skandinaviska Enskilda Banken AB (publ) provides corporate, retail, investment, and private banking services. The company operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Private Wealth Management & Family Office, Baltic, Life, and Investment Management divisions. It offers treasury advisory services; factoring and receivable, trade, and export financing; markets and trading, such as equities, fixed income, commodities, and foreign exchange; financial services, including investment, financing, and ownership; and shipping and real estate finance. In addition, it offers venture capital for entrepreneurs and innovators; private wealth management; investor services; asset management and life insurance products that include funds, tailored portfolios, and life insurance; fixed income, commodities, debt capital market, and equity research; investment banking; venture capital; and cash management products comprising integration service, file integration network, and payment solutions. The company serves large corporates, financial institutions, private individuals, and small and medium-sized companies. It operates in Sweden, Norway, Denmark, Finland, Estonia, Latvia, Lithuania, Germany, the United Kingdom, Austria, the United States, Ireland, Luxembourg, Switzerland, Brazil, India, China, the Netherlands, Singapore, Russia, Poland, Hong Kong, Ukraine, and internationally. The company was founded in 1856 and is headquartered in Stockholm, Sweden.

About Pinnacle Financial Partners

Pinnacle Financial Partners, Inc. operates as the bank holding company for Pinnacle Bank that provides various banking products and services to individuals, businesses, and professional entities in the United States. It accepts various deposits, including savings, noninterest-bearing and interest-bearing checking, money market, and certificate of deposit accounts; and provides treasury management services, such as online wire origination, enhanced ACH origination, positive pay, zero balance and sweep accounts, automated bill pay services, electronic receivables processing, lockbox processing, and merchant card acceptance services, small business and commercial credit cards corporate purchasing cards, and virtual accounting/deposit escrow solutions. The company also offers equipment and working capital loan; commercial real estate loans, such as investment properties and business loan; secured and unsecured loans comprising installment and term, lines of credit, and residential first mortgage, as well as home equity loans and home equity lines of credit; and credit cards for consumers and businesses. In addition, the company provides investment products; brokerage and investment advisory programs; and fiduciary and investment services, including personal trust, investment management, estate administration, endowments, foundations, individual retirement accounts, escrow services, and custody. Further, it offers insurance agency services in the property and casualty area; investment, merger and acquisition advisory services, private debt, equity and mezzanine, and other middle-market advisory services; and other banking services, including telephone and online banking, mobile banking, debit cards, direct deposit and remote deposit capture, mobile deposit option, automated teller machine, and cash management services. Pinnacle Financial Partners, Inc. was incorporated in 2000 and is headquartered in Nashville, Tennessee.