OceanFirst Financial (NASDAQ:OCFC) vs. Danske Bank A/S (OTCMKTS:DNKEY) Critical Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OceanFirst Financial	15.28%	6.08%	0.76%
Danske Bank A/S	42.04%	13.40%	0.63%

Valuation & Earnings

This table compares OceanFirst Financial and Danske Bank A/S”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OceanFirst Financial	$384.08 million	3.04	$104.03 million	$1.75	11.42
Danske Bank A/S	$7.61 billion	3.25	$3.09 billion	$1.97	7.40

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

Dividends

OceanFirst Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Danske Bank A/S pays an annual dividend of $0.77 per share and has a dividend yield of 5.3%. OceanFirst Financial pays out 45.7% of its earnings in the form of a dividend. Danske Bank A/S pays out 39.1% 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.

Insider and Institutional Ownership

71.0% of OceanFirst Financial shares are held by institutional investors. 5.0% of OceanFirst Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

OceanFirst Financial has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Danske Bank A/S has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for OceanFirst Financial and Danske Bank A/S, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OceanFirst Financial	0	4	2	0	2.33
Danske Bank A/S	1	1	0	1	2.33

OceanFirst Financial currently has a consensus target price of $19.75, indicating a potential downside of 1.15%. Given OceanFirst Financial’s higher probable upside, equities analysts plainly believe OceanFirst Financial is more favorable than Danske Bank A/S.

Summary

Danske Bank A/S beats OceanFirst Financial on 9 of the 16 factors compared between the two stocks.

About OceanFirst Financial

OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits, that includes brokered deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, trust and asset management services; and bank owned life insurance products. The company was founded in 1902 and is based in Red Bank, New Jersey.

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.