Financial Comparison: Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) and Bancorp (NASDAQ:TBBK)

Bancorp (NASDAQ:TBBK) and Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Risk & Volatility

Bancorp has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Svenska Handelsbanken AB (publ) has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bancorp and Svenska Handelsbanken AB (publ)’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$483.13 million	5.30	$192.30 million	$3.68	13.33
Svenska Handelsbanken AB (publ)	$16.45 billion	1.22	$2.74 billion	$0.69	7.35

Svenska Handelsbanken AB (publ) has higher revenue and earnings than Bancorp. Svenska Handelsbanken AB (publ) is trading at a lower price-to-earnings ratio than Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

96.2% of Bancorp shares are held by institutional investors. 5.2% of Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Bancorp and Svenska Handelsbanken AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp	0	0	3	0	3.00
Svenska Handelsbanken AB (publ)	0	0	0	0	N/A

Bancorp presently has a consensus target price of $55.00, indicating a potential upside of 12.15%. Given Bancorp’s higher possible upside, equities research analysts clearly believe Bancorp is more favorable than Svenska Handelsbanken AB (publ).

Profitability

This table compares Bancorp and Svenska Handelsbanken AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bancorp	31.52%	26.81%	2.73%
Svenska Handelsbanken AB (publ)	14.98%	13.76%	0.75%

Summary

Bancorp beats Svenska Handelsbanken AB (publ) on 11 of the 13 factors compared between the two stocks.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.

About Svenska Handelsbanken AB (publ)

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.