Critical Review: Swedbank AB (publ) (OTCMKTS:SWDBY) & First Republic Bank (OTCMKTS:FRCB)

First Republic Bank (OTCMKTS:FRCB) and Swedbank AB (publ) (OTCMKTS:SWDBY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

0.0% of First Republic Bank shares are held by institutional investors. 0.7% of First Republic Bank shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for First Republic Bank and Swedbank AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Republic Bank	0	0	0	0	0.00
Swedbank AB (publ)	0	2	0	0	2.00

Earnings & Valuation

This table compares First Republic Bank and Swedbank AB (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Republic Bank	$6.75 billion	0.00	$1.67 billion	N/A	N/A
Swedbank AB (publ)	$11.74 billion	N/A	$3.22 billion	SEK 2.92	6.71

Swedbank AB (publ) has higher revenue and earnings than First Republic Bank.

Dividends

First Republic Bank pays an annual dividend of 1.08 per share and has a dividend yield of 14,400.0%. Swedbank AB (publ) pays an annual dividend of SEK 0.97 per share and has a dividend yield of 5.0%. Swedbank AB (publ) pays out 33.2% of its earnings in the form of a dividend.

Profitability

This table compares First Republic Bank and Swedbank AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Republic Bank	N/A	N/A	N/A
Swedbank AB (publ)	25.27%	17.72%	1.17%

Volatility and Risk

First Republic Bank has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Swedbank AB (publ) has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Summary

Swedbank AB (publ) beats First Republic Bank on 6 of the 11 factors compared between the two stocks.

About First Republic Bank

As of May 1, 2023, First Republic Bank went out of business. Previously, First Republic Bank provided private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. The company was founded in 1985 and was headquartered in San Francisco, California. First Republic Bank now trades on OTCPK.

About Swedbank AB (publ)

Swedbank AB (publ) provides various banking products and services to private and corporate customers in Sweden, Estonia, Latvia, Lithuania, Norway, the United States, Finland, Denmark, Luxembourg, and China. The company operates through three business areas: Swedish Banking, Baltic Banking, and Corporates and Institutions. It offers savings accounts, mutual funds and insurance savings, pension savings, institutional asset management, and other savings and investment products; private residential lending, consumer financing, corporate lending, leasing, and other financing products, as well as trade finance and factoring services; and current accounts, cash handling, debit and credit cards, and card acquiring, as well as domestic, international, mobile, document, and other payment products. The company also provides equity trading, structured products, corporate finance, custody services, fixed income and currency trading, and other capital market products; and administrative services, treasury operations, real estate brokerage and management services, legal services, safe deposit boxes, and other services. In addition, it offers pension insurance and plan, life, endowment insurance, and personal insurance products; investment management, investment banking, and mortgage lending services; and transaction banking services comprising cash management, securities, account, and clearing and settlement services, as well as Internet and mobile banking services. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.