Danske Bank (OTCMKTS:DNKEY – Get Free Report) and ING Group (NYSE:ING – Get Free Report) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Profitability
This table compares Danske Bank and ING Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Danske Bank | 40.38% | 13.14% | 0.62% |
| ING Group | 27.68% | 12.27% | 0.60% |
Analyst Recommendations
This is a summary of current ratings and price targets for Danske Bank and ING Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Danske Bank | 0 | 2 | 4 | 0 | 2.67 |
| ING Group | 0 | 4 | 3 | 1 | 2.62 |
Institutional & Insider Ownership
Risk & Volatility
Danske Bank has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, ING Group has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
Earnings & Valuation
This table compares Danske Bank and ING Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Danske Bank | $8.61 billion | 5.47 | $3.49 billion | $2.17 | 13.29 |
| ING Group | $23.09 billion | 4.20 | $9.42 billion | $2.53 | 13.16 |
ING Group has higher revenue and earnings than Danske Bank. ING Group is trading at a lower price-to-earnings ratio than Danske Bank, indicating that it is currently the more affordable of the two stocks.
Dividends
Danske Bank pays an annual dividend of $1.58 per share and has a dividend yield of 5.5%. ING Group pays an annual dividend of $1.46 per share and has a dividend yield of 4.4%. Danske Bank pays out 72.8% of its earnings in the form of a dividend. ING Group pays out 57.7% 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.
Summary
Danske Bank beats ING Group on 8 of the 15 factors compared between the two stocks.
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.
About ING Group
ING Groep N.V. provides various banking products and services in the Netherlands, Belgium, Germany, rest of Europe, and internationally. It operates through five segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking. The company accepts current and savings accounts. It also offers business lending products; SME loans; consumer lending products, such as residential mortgage loans and other consumer lending loans; and mortgages. In addition, the company provides working capital solutions; debt and equity market solutions; various loans; payments; and cash management, trade and corporate finance, and treasury services, as well as savings, investment, insurance, and digital banking services. It serves individual customers, corporate clients, and financial institutions. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.
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