Bank of China (OTCMKTS:BACHY – Get Free Report) and Danske Bank (OTCMKTS:DNKEY – Get Free Report) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Volatility & Risk
Bank of China has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Danske Bank has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Dividends
Bank of China pays an annual dividend of $0.55 per share and has a dividend yield of 3.3%. Danske Bank pays an annual dividend of $1.57 per share and has a dividend yield of 6.1%. Bank of China pays out 21.4% of its earnings in the form of a dividend. Danske Bank pays out 72.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Bank of China | 20.09% | 7.81% | 0.67% |
| Danske Bank | 40.38% | 13.14% | 0.62% |
Earnings & Valuation
This table compares Bank of China 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 | |
| Bank of China | $169.73 billion | 1.27 | $33.81 billion | $2.57 | 6.53 |
| Danske Bank | $8.61 billion | 4.88 | $3.49 billion | $2.17 | 11.85 |
Bank of China has higher revenue and earnings than Danske Bank. Bank of China is trading at a lower price-to-earnings ratio than Danske Bank, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Bank of China and Danske Bank, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank of China | 0 | 1 | 0 | 0 | 2.00 |
| Danske Bank | 0 | 2 | 4 | 0 | 2.67 |
Summary
Danske Bank beats Bank of China on 8 of the 13 factors compared between the two stocks.
About Bank of China
Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other. The Corporate Banking segment provides current accounts, deposits, overdrafts, loans, payments and settlements, trade-related products, and other credit facilities, as well as foreign currency, derivative, and wealth management products for corporate customers, government authorities, and financial institutions. The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers. The Treasury Operations segment offers foreign exchange transactions, customer-based interest rate, and foreign exchange derivative transactions, as well as money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services. The Insurance segment provides underwriting services for general and life insurance business, and insurance agency services. In addition, the company operates debt-to-equity swaps and other supporting, and aircraft and financial leasing business. The company was founded in 1912 and is headquartered in Beijing, China.
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.
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