Royal Bank of Canada (NYSE:RY) and SEB/SH A (OTCMKTS:SVKEF) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
This is a summary of recent recommendations and price targets for Royal Bank of Canada and SEB/SH A, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Royal Bank of Canada||0||4||6||0||2.60|
Royal Bank of Canada currently has a consensus target price of $100.50, suggesting a potential upside of 32.62%. Given Royal Bank of Canada’s higher possible upside, equities analysts clearly believe Royal Bank of Canada is more favorable than SEB/SH A.
Earnings and Valuation
This table compares Royal Bank of Canada and SEB/SH A’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Royal Bank of Canada||$40.37 billion||2.71||$8.74 billion||$6.06||12.50|
|SEB/SH A||$7.05 billion||3.31||N/A||N/A||N/A|
Royal Bank of Canada has higher revenue and earnings than SEB/SH A.
Institutional & Insider Ownership
39.8% of Royal Bank of Canada shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Royal Bank of Canada and SEB/SH A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Royal Bank of Canada||21.48%||18.11%||0.99%|
Risk and Volatility
Royal Bank of Canada has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, SEB/SH A has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Royal Bank of Canada pays an annual dividend of $2.86 per share and has a dividend yield of 3.8%. SEB/SH A does not pay a dividend. Royal Bank of Canada pays out 47.2% of its earnings in the form of a dividend.
Royal Bank of Canada beats SEB/SH A on 8 of the 11 factors compared between the two stocks.
About Royal Bank of Canada
Royal Bank of Canada, together with its subsidiaries, operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers personal and business banking services, as well as auto financing and retail investment products. This segment also provides a suite of financial products and services to individual, business clients, and public institutions through its branch, automated teller machines, online, mobile, and telephone banking networks, as well as through sales professionals. Its Wealth Management segment offers a suite of investment, trust, banking, credit, and other wealth management solutions to high net worth and ultra-high net worth clients; and asset management products and services directly to institutional and individual clients through its distribution channels and third-party distributors. The company's Insurance segment provides life, health, home, auto, travel, wealth, group, and reinsurance products and solutions through retail insurance branches, field sales representatives, advice centers, and online network, as well as through independent insurance advisors and affinity relationships. Its Investor and Treasury Services segment offers asset services, custody, payments, and treasury services for financial and other institutional investors. This segment also provides cash management, correspondent banking, and trade finance for financial institutions; and short-term funding and liquidity management services. The company's Capital Markets segment offers corporate and investment banking, as well as equity and debt origination, distribution, and structuring and trading for public and private companies, institutional investors, governments, and central banks. Royal Bank of Canada was founded in 1864 and is headquartered in Toronto, Canada.
About SEB/SH A
Skandinaviska Enskilda Banken AB (publ.) provides corporate, retail, investment, and private banking services in Sweden and internationally. It operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Baltic, Life & Investment Management, and Other segments. The company offers research services; analysis, advisory, execution, and trading services in the foreign exchange, fixed income, equities, and commodities markets; transaction services, including cash management, trade and supply chain financing, custody, asset servicing, and fund services. It also provides investment banking services, such as corporate finance advisory services related to acquisitions, divestments, and mergers; equity capital market services related to initial public offerings, rights issues, and placings; and debt financing services comprising corporate loan origination, debt capital markets, leveraged finance, and structured finance services, as well as real estate and shipping finance services. In addition, the company offers venture capital for entrepreneurs and innovators; asset management products that include alternative, equity, fixed income, investment, and private equity solutions for institutional investors, and retail and private banking clients; and pensions, life insurance, health care insurance, and disability insurance, as well as investor, wholesale, treasury, and sickness insurance services. It serves large corporations and institutions, private customers, and small and medium-sized corporates. The company offers its services through 196 branch offices in Sweden and the Baltic countries; and 20 international sites, as well as phone banking services. Skandinaviska Enskilda Banken AB (publ.) was founded in 1856 and is headquartered in Stockholm, Sweden.
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