First Hawaiian (NASDAQ:FHB – Get Free Report) and Danske Bank (OTCMKTS:DNKEY – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Profitability
This table compares First Hawaiian and Danske Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| First Hawaiian | 24.41% | 10.27% | 1.19% |
| Danske Bank | 40.85% | 13.80% | 0.63% |
Institutional and Insider Ownership
97.6% of First Hawaiian shares are owned by institutional investors. 0.7% of First Hawaiian shares are owned by company insiders. 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.
Dividends
Volatility & Risk
First Hawaiian has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Danske Bank has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for First Hawaiian and Danske Bank, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Hawaiian | 2 | 7 | 2 | 0 | 2.00 |
| Danske Bank | 0 | 3 | 4 | 0 | 2.57 |
First Hawaiian currently has a consensus price target of $29.38, indicating a potential upside of 16.29%. Given First Hawaiian’s higher probable upside, research analysts clearly believe First Hawaiian is more favorable than Danske Bank.
Valuation & Earnings
This table compares First Hawaiian and Danske Bank”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| First Hawaiian | $1.17 billion | 2.63 | $276.27 million | $2.30 | 10.98 |
| Danske Bank | $8.61 billion | 5.27 | $3.49 billion | $2.26 | 12.30 |
Danske Bank has higher revenue and earnings than First Hawaiian. First Hawaiian is trading at a lower price-to-earnings ratio than Danske Bank, indicating that it is currently the more affordable of the two stocks.
Summary
Danske Bank beats First Hawaiian on 9 of the 16 factors compared between the two stocks.
About First Hawaiian
First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.
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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