VersaBank (NASDAQ:VBNK) and DNB Bank ASA (OTCMKTS:DNBBY) Financial Analysis


VersaBank (NASDAQ: VBNKGet a rating) and DNB Bank ASA (OTCMKTS: DNBBYGet a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on their dividend strength, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares the net margins, return on equity and return on assets of VersaBank and DNB Bank ASA.

Net margins Return on equity return on assets
VersaBank 21.25% 8.29% 1.07%
DNB Bank ASA 39.63% 10.10% 0.82%

Institutional and insider ownership

24.3% of VersaBank shares are held by institutional investors. By comparison, 0.1% of DNB Bank ASA shares are held by institutional investors. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for VersaBank and DNB Bank ASA, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
VersaBank 0 0 0 1 4.00
DNB Bank ASA 1 4 5 0 2.40

DNB Bank ASA has a consensus target price of $201.67, indicating a potential upside of 921.10%. Given the likely higher upside of DNB Bank ASA, analysts clearly believe that DNB Bank ASA is more favorable than VersaBank.

Dividends

VersaBank pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. DNB Bank ASA pays an annual dividend of $1.62 per share and has a dividend yield of 8.2%. VersaBank pays 11.9% of its profits as a dividend. DNB Bank ASA pays out 89.0% of its profits in the form of a dividend, suggesting that it may not have enough profits to cover its dividend payment in the future.

Benefits and evaluation

This table compares revenue, earnings per share and valuation of VersaBank and DNB Bank ASA.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
VersaBank $75.30 million 2.67 $17.80 million $0.67 10.96
DNB Bank ASA $7.12 billion 4:30 $2.95 billion $1.82 10.85

DNB Bank ASA has higher revenue and profit than VersaBank. DNB Bank ASA trades at a lower price-to-earnings ratio than VersaBank, indicating that it is currently the more affordable of the two stocks.

Summary

DNB Bank ASA 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 loan and lease receivables 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 DNB Bank ASA

(Get a rating)

DNB Bank ASA provides financial services to individuals and businesses in Norway and internationally. The Company offers personal banking products and services, including savings and investment products; loans, such as home loans and automobile and consumer loans; pet, home and property, travel and personal insurance products, as well as vehicle insurance products; retirement savings products; foreign exchange and treasury activities; and internet and mobile banking, as well as cards. It also provides corporate banking products and services comprising savings and investment products consisting of savings accounts, fixed rate deposits, exchange-traded products, bonds and commercial paper, management equity assets and services; financing, such as installment loans, overdraft facilities, bank guarantees, leasing, factoring, and trade and export finance services; transaction banking services; research, commodities, bonds and commercial paper, corporate finance, debt capital market, equities, foreign exchange and interest rates, and securities services; and Internet services, including online stock trading, online currency trading, electronic confirmation, stock execution, and investor and margin accounts, and retirement services. In addition, the Company provides investment banking services, such as mergers and acquisitions, and equity and debt capital markets services; foreign exchange, interest rate, equity, commodity, fixed income, research, private equity and securities services; and business banking. In addition, it offers private banking services. The company offers its products and services to various sectors, including energy; financial institutions; Health care; manufacturing; packaging and forest products; Seafood; shipping, offshore and logistics; and telecommunications, media and technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.



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