Nordea Bank (OTCMKTS:NRDBY – Get Free Report) and First Financial Bancorp. (NASDAQ:FFBC – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
Valuation and Earnings
This table compares Nordea Bank and First Financial Bancorp.”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nordea Bank | $23.46 billion | 2.98 | $5.48 billion | $1.61 | 12.75 |
| First Financial Bancorp. | $1.26 billion | 2.68 | $255.60 million | $2.83 | 11.35 |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Nordea Bank and First Financial Bancorp., as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nordea Bank | 1 | 3 | 3 | 1 | 2.50 |
| First Financial Bancorp. | 0 | 4 | 4 | 0 | 2.50 |
First Financial Bancorp. has a consensus target price of $33.67, suggesting a potential upside of 4.82%. Given First Financial Bancorp.’s higher possible upside, analysts clearly believe First Financial Bancorp. is more favorable than Nordea Bank.
Profitability
This table compares Nordea Bank and First Financial Bancorp.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nordea Bank | 22.82% | 15.18% | 0.71% |
| First Financial Bancorp. | 20.77% | 11.13% | 1.49% |
Insider & Institutional Ownership
0.0% of Nordea Bank shares are owned by institutional investors. Comparatively, 77.2% of First Financial Bancorp. shares are owned by institutional investors. 1.1% of First Financial Bancorp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Nordea Bank has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, First Financial Bancorp. has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Dividends
Nordea Bank pays an annual dividend of $0.35 per share and has a dividend yield of 1.7%. First Financial Bancorp. pays an annual dividend of $1.04 per share and has a dividend yield of 3.2%. Nordea Bank pays out 21.7% of its earnings in the form of a dividend. First Financial Bancorp. pays out 36.7% 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. First Financial Bancorp. has raised its dividend for 1 consecutive years. First Financial Bancorp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
First Financial Bancorp. beats Nordea Bank on 9 of the 17 factors compared between the two stocks.
About Nordea Bank
Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates & Institutions, and Asset & Wealth Management segments. The Personal Banking segment provides various financial services to customers through mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and cards and finance solutions to corporate and personal customers. The Large Corporates & Institutions segment provides financing, cash management and payment, investment banking, capital market products, and securities services to corporate and institutional customers. The Asset & Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. It also offers account-based products, such as lending and deposit; project finance services, asset-based financing through leasing, hire purchase, and factoring, as well as sales to finance partners, such as dealers, vendors, and retailers; financial instruments or arrangement for financial instruments, including currencies, commodities, stocks, and bonds; and asset management, including investment funds, discretionary management, portfolio advice, equity trading, and pension accounts, as well as life insurance and pension products and services. Nordea Bank Abp was founded in 1820 and is headquartered in Helsinki, Finland.
About First Financial Bancorp.
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First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company offers checking, savings, and money-market accounts; and accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, and office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment, as well as equipment and leasehold improvement financing for franchisees; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; lease and equipment financing services; and currency payments, foreign exchange hedging, and other advisory products. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.
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