Financial Comparison: Bank Hapoalim (OTCMKTS:BKHYY) versus Nordea Bank (OTCMKTS:NRDBY)

Bank Hapoalim (OTCMKTS:BKHYY) and Nordea Bank (OTCMKTS:NRDBY) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Volatility & Risk

Bank Hapoalim has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Nordea Bank has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Nordea Bank shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Bank Hapoalim pays an annual dividend of $4.18 per share and has a dividend yield of 4.3%. Nordea Bank pays an annual dividend of $0.46 per share and has a dividend yield of 2.8%. Bank Hapoalim pays out 48.0% of its earnings in the form of a dividend. Nordea Bank pays out 30.7% 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.

Profitability

This table compares Bank Hapoalim and Nordea Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank Hapoalim	20.12%	14.21%	1.16%
Nordea Bank	20.63%	15.50%	0.76%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Bank Hapoalim and Nordea Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank Hapoalim	0	1	0	0	2.00
Nordea Bank	2	1	2	0	2.00

Earnings & Valuation

This table compares Bank Hapoalim and Nordea Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank Hapoalim	$10.95 billion	2.35	$2.08 billion	$8.71	11.19
Nordea Bank	$26.50 billion	2.12	$5.47 billion	$1.50	10.82

Nordea Bank has higher revenue and earnings than Bank Hapoalim. Nordea Bank is trading at a lower price-to-earnings ratio than Bank Hapoalim, indicating that it is currently the more affordable of the two stocks.

Summary

Nordea Bank beats Bank Hapoalim on 7 of the 13 factors compared between the two stocks.

About Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.

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.