Skandinaviska (OTCMKTS:SVKEF – Get Free Report) and Provident Financial (NASDAQ:PROV – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Volatility and Risk
Skandinaviska has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Provident Financial has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.
Valuation and Earnings
This table compares Skandinaviska and Provident Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skandinaviska | $23.09 billion | 1.89 | $3.17 billion | $1.84 | 11.63 |
| Provident Financial | $59.62 million | 1.89 | $6.66 million | $1.03 | 17.66 |
Skandinaviska has higher revenue and earnings than Provident Financial. Skandinaviska is trading at a lower price-to-earnings ratio than Provident Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Skandinaviska and Provident Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skandinaviska | 0 | 7 | 0 | 0 | 2.00 |
| Provident Financial | 0 | 2 | 0 | 1 | 2.67 |
Provident Financial has a consensus target price of $18.00, suggesting a potential downside of 1.04%. Given Provident Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Provident Financial is more favorable than Skandinaviska.
Institutional & Insider Ownership
71.3% of Provident Financial shares are owned by institutional investors. 10.9% of Provident Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Skandinaviska and Provident Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skandinaviska | 21.03% | 15.43% | 0.85% |
| Provident Financial | 10.88% | 5.16% | 0.54% |
About Skandinaviska
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Skandinaviska Enskilda Banken AB (publ) provides corporate, retail, investment, and private banking services. The company operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Private Wealth Management & Family Office, Baltic, Life, and Investment Management divisions. It offers treasury advisory services; factoring and receivable, trade, and export financing; markets and trading, such as equities, fixed income, commodities, and foreign exchange; financial services, including investment, financing, and ownership; and shipping and real estate finance. In addition, it offers venture capital for entrepreneurs and innovators; private wealth management; investor services; asset management and life insurance products that include funds, tailored portfolios, and life insurance; fixed income, commodities, debt capital market, and equity research; investment banking; venture capital; and cash management products comprising integration service, file integration network, and payment solutions. The company serves large corporates, financial institutions, private individuals, and small and medium-sized companies. It operates in Sweden, Norway, Denmark, Finland, Estonia, Latvia, Lithuania, Germany, the United Kingdom, Austria, the United States, Ireland, Luxembourg, Switzerland, Brazil, India, China, the Netherlands, Singapore, Russia, Poland, Hong Kong, Ukraine, and internationally. The company was founded in 1856 and is headquartered in Stockholm, Sweden.
About Provident Financial
Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The company's deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. It also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. The company operates through full-service banking offices in Riverside County and San Bernardino County. Provident Financial Holdings, Inc. was founded in 1956 and is headquartered in Riverside, California.
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