Critical Contrast: United Bancshares (NASDAQ:UBOH) and Danske Bank A/S (OTCMKTS:DNKEY)

United Bancshares (NASDAQ:UBOH) and Danske Bank A/S (OTCMKTS:DNKEY) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership

20.4% of United Bancshares shares are held by institutional investors. Comparatively, 0.1% of Danske Bank A/S shares are held by institutional investors. 6.3% of United Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

United Bancshares has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Danske Bank A/S has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares United Bancshares and Danske Bank A/S’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Bancshares $67.03 million 1.61 $13.76 million N/A N/A
Danske Bank A/S $6.49 billion 2.50 $703.03 million N/A N/A

Danske Bank A/S has higher revenue and earnings than United Bancshares.

Profitability

This table compares United Bancshares and Danske Bank A/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Bancshares 23.91% 15.33% 1.67%
Danske Bank A/S 19.64% 5.74% 0.24%

Dividends

United Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. Danske Bank A/S pays an annual dividend of $0.11 per share and has a dividend yield of 1.2%. United Bancshares has raised its dividend for 1 consecutive years. United Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for United Bancshares and Danske Bank A/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Bancshares 0 0 0 0 N/A
Danske Bank A/S 1 6 1 0 2.00

Summary

United Bancshares beats Danske Bank A/S on 7 of the 13 factors compared between the two stocks.

United Bancshares Company Profile

United Bancshares, Inc. operates as the bank holding company for The Union Bank Company that provides various commercial and consumer banking services. The company accepts various deposits products, such as checking, savings, demand deposit, money market deposit, term certificate, and individual retirement accounts, as well as certificates of deposit. Its loan products include commercial and residential real estate, agricultural, commercial and industrial, home equity, and various types of consumer and small business administration loans. The company also offers wealth management, financial needs analysis, mutual funds, securities trading, annuities, and life insurance services; and treasury management, online and mobile banking, automatic teller machine, bill pay, safe deposit box rental, payment, and other personalized services. It operates eighteen banking centers and two loan production offices in northwest and central Ohio. United Bancshares, Inc. was founded in 1904 and is headquartered in Columbus Grove, Ohio.

Danske Bank A/S Company Profile

Danske Bank A/S provides various banking products and services to small and medium-sized businesses, corporate, institutional, and personal customers. The company offers daily banking, home financing, investment, and retirement planning solutions; strategic advisory services; leasing solutions; and financing, financial market, general banking, and corporate finance advisory services, as well as financial solutions and products in the areas of capital markets, fixed income and currencies, and transaction banking and investor services. It also provides wealth and asset management, pension savings, and insurance solutions, including life, health, and accident; and mobile banking services. In addition, the company provides mortgage finance and real-estate brokerage services, as well as trades in fixed income products, foreign exchange, and equities. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, Ireland, Baltics, Germany, and Poland. Danske Bank A/S was founded in 1871 and is headquartered in Copenhagen, Denmark.

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