Head-To-Head Comparison: Danske Bank A/S (OTCMKTS:DNKEY) vs. Sturgis Bancorp (OTCMKTS:STBI)

Danske Bank A/S (OTCMKTS:DNKEY) and Sturgis Bancorp (OTCMKTS:STBI) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Earnings & Valuation

This table compares Danske Bank A/S and Sturgis Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank A/S	$7.61 billion	3.46	$3.09 billion	$1.82	8.45
Sturgis Bancorp	$49.68 million	0.74	$6.02 million	$1.19	14.29

Danske Bank A/S has higher revenue and earnings than Sturgis Bancorp. Danske Bank A/S is trading at a lower price-to-earnings ratio than Sturgis Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Danske Bank A/S and Sturgis Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank A/S	0	0	0	0	N/A
Sturgis Bancorp	0	0	0	0	N/A

Profitability

This table compares Danske Bank A/S and Sturgis Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank A/S	41.10%	13.02%	0.60%
Sturgis Bancorp	3.88%	N/A	N/A

Volatility and Risk

Danske Bank A/S has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Sturgis Bancorp has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Dividends

Danske Bank A/S pays an annual dividend of $0.77 per share and has a dividend yield of 5.0%. Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 4.0%. Danske Bank A/S pays out 42.3% of its earnings in the form of a dividend. Sturgis Bancorp pays out 57.1% 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. Danske Bank A/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Danske Bank A/S beats Sturgis Bancorp on 10 of the 11 factors compared between the two stocks.

About Danske Bank A/S

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 Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.