Critical Survey: ING Group (NYSE:ING) vs. Danske Bank (OTCMKTS:DNKEY)

ING Group (NYSE:ING) and Danske Bank (OTCMKTS:DNKEY) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings and Valuation

This table compares ING Group and Danske Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ING Group	$26.06 billion	3.57	$9.42 billion	$2.53	12.64
Danske Bank	$8.61 billion	5.25	$3.49 billion	$2.17	12.76

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

Dividends

ING Group pays an annual dividend of $1.46 per share and has a dividend yield of 4.6%. Danske Bank pays an annual dividend of $1.58 per share and has a dividend yield of 5.7%. ING Group pays out 57.7% of its earnings in the form of a dividend. Danske Bank pays out 72.8% 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.

Analyst Recommendations

This is a summary of current recommendations for ING Group and Danske Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ING Group	0	4	4	1	2.67
Danske Bank	0	2	4	0	2.67

Insider & Institutional Ownership

4.5% of ING Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares ING Group and Danske Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ING Group	27.68%	12.27%	0.60%
Danske Bank	40.38%	13.14%	0.62%

Risk & Volatility

ING Group has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Danske Bank has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Summary

ING Group beats Danske Bank on 7 of the 13 factors compared between the two stocks.

About ING Group

ING Groep N.V. provides various banking products and services in the Netherlands, Belgium, Germany, rest of Europe, and internationally. It operates through five segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking. The company accepts current and savings accounts. It also offers business lending products; SME loans; consumer lending products, such as residential mortgage loans and other consumer lending loans; and mortgages. In addition, the company provides working capital solutions; debt and equity market solutions; various loans; payments; and cash management, trade and corporate finance, and treasury services, as well as savings, investment, insurance, and digital banking services. It serves individual customers, corporate clients, and financial institutions. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.

About Danske Bank

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.