Critical Review: Erste Group Bank (OTCMKTS:EBKDY) and Skandinaviska Enskilda Banken AB (publ) (OTCMKTS:SVKEF)

Erste Group Bank (OTCMKTS:EBKDY) and Skandinaviska Enskilda Banken AB (publ) (OTCMKTS:SVKEF) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Erste Group Bank and Skandinaviska Enskilda Banken AB (publ), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Erste Group Bank 0 3 6 0 2.67
Skandinaviska Enskilda Banken AB (publ) 3 6 1 0 1.80

Erste Group Bank currently has a consensus target price of $45.64, indicating a potential upside of 119.58%. Given Erste Group Bank’s stronger consensus rating and higher probable upside, equities analysts plainly believe Erste Group Bank is more favorable than Skandinaviska Enskilda Banken AB (publ).

Insider & Institutional Ownership

0.4% of Erste Group Bank shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Erste Group Bank and Skandinaviska Enskilda Banken AB (publ)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Erste Group Bank 15.73% 6.46% 0.50%
Skandinaviska Enskilda Banken AB (publ) 39.64% 12.95% 0.69%

Earnings & Valuation

This table compares Erste Group Bank and Skandinaviska Enskilda Banken AB (publ)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Erste Group Bank $10.22 billion 1.75 $894.65 million $0.90 23.09
Skandinaviska Enskilda Banken AB (publ) $6.77 billion 4.40 $1.72 billion N/A N/A

Skandinaviska Enskilda Banken AB (publ) has lower revenue, but higher earnings than Erste Group Bank.

Risk and Volatility

Erste Group Bank has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Skandinaviska Enskilda Banken AB (publ) has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Summary

Erste Group Bank beats Skandinaviska Enskilda Banken AB (publ) on 7 of the 12 factors compared between the two stocks.

About Erste Group Bank

Erste Group Bank AG engages in the provision of banking and financial services. It operates through the following business segments: Retail, Corporates, Group Markets, Asset/Liability Management & Local Corporate Center, Savings Banks, and Group Corporate Center. The Retail segment comprises the business with private individuals, micros, and free professionals within the responsibility of account managers in the retail network. The Corporates segment consists of business activities with corporate customers of different turnover size as well as commercial real estate and public sector business. The Group Markets segment is involved in trading and markets services, as well as customer business with financial institutions. The Asset/Liability Management & Local Corporate Center segment is composed of all asset and liability management functions, local and of Erste Group Bank AG (Holding), and local corporate centers such as internal service providers. The Savings Banks segment includes savings banks, which are members of the Haftungsverbund of the Austrian savings banks sector. The Group Corporate Center segment covers mainly centrally managed activities and items that are not directl

About Skandinaviska Enskilda Banken AB (publ)

Skandinaviska Enskilda Banken AB engages in the provision of corporate, retail, investment and private banking services. It also provides asset management and life insurance service. The company operates through the following segments: Large Corporates & Financial Institutions, Corporate & Private Customers, Baltic, Life & Investment Management and Other. Skandinaviska Enskilda Banken was founded by André Oscar Wallenberg in 1856 and is headquartered in Stockholm, Sweden.

Receive News & Ratings for Erste Group Bank Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Erste Group Bank and related companies with MarketBeat.com's FREE daily email newsletter.