Financial Analysis: Danske Bank (OTCMKTS:DNKEY) versus CaixaBank (OTCMKTS:CAIXY)

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

Risk and Volatility

CaixaBank has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Danske Bank has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CaixaBank	N/A	N/A	N/A
Danske Bank	40.52%	13.43%	0.62%

Earnings & Valuation

This table compares CaixaBank and Danske Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CaixaBank	$24.18 billion	3.75	$6.66 billion	N/A	N/A
Danske Bank	$8.61 billion	5.26	$3.43 billion	$2.02	13.41

CaixaBank has higher revenue and earnings than Danske Bank.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CaixaBank	1	3	1	0	2.00
Danske Bank	0	1	4	0	2.80

Dividends

CaixaBank pays an annual dividend of $0.07 per share and has a dividend yield of 1.6%. Danske Bank pays an annual dividend of $0.76 per share and has a dividend yield of 2.8%. Danske Bank pays out 37.6% of its earnings in the form of a dividend.

Summary

Danske Bank beats CaixaBank on 8 of the 11 factors compared between the two stocks.

About CaixaBank

CaixaBank, S.A., together with its subsidiaries, provides various banking products and financial services in Spain and internationally. The company operates through Banking and Insurance, Equity Investments, and BPI segments. It also provides solutions related to security, protection, internationalization, and financing; traditional financial advice, independent advice, and broker services; asset management; liquidity management; capital markets, cash management, project finance, asset finance, and M&A services; and various financial services and solutions to public and private sector institutions, as well as distributes non-life and life risk insurance policies; and private banking services. In addition, the company is involved in the real estate business. It has branches and ATMs in Spain; and branches and ATMs in Portugal. CaixaBank, S.A. was founded in 1904 and is based in Valencia, Spain.

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.