Contrasting DNB Bank ASA (OTCMKTS:DNBBY) & Fvcbankcorp (NASDAQ:FVCB)

Fvcbankcorp (NASDAQ:FVCB) and DNB Bank ASA (OTCMKTS:DNBBY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Volatility and Risk

Fvcbankcorp has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, DNB Bank ASA has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Insider and Institutional Ownership

43.6% of Fvcbankcorp shares are held by institutional investors. 11.2% of Fvcbankcorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Fvcbankcorp and DNB Bank ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fvcbankcorp	20.45%	9.80%	1.08%
DNB Bank ASA	21.34%	13.97%	1.06%

Dividends

Fvcbankcorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. DNB Bank ASA pays an annual dividend of $1.42 per share and has a dividend yield of 4.1%. Fvcbankcorp pays out 19.7% of its earnings in the form of a dividend. DNB Bank ASA pays out 50.7% 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.

Earnings and Valuation

This table compares Fvcbankcorp and DNB Bank ASA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fvcbankcorp	$122.03 million	2.77	$22.06 million	$1.42	13.18
DNB Bank ASA	$19.14 billion	2.79	$4.20 billion	$2.80	12.30

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

Analyst Recommendations

This is a breakdown of recent ratings for Fvcbankcorp and DNB Bank ASA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fvcbankcorp	0	1	2	0	2.67
DNB Bank ASA	2	4	2	0	2.00

Fvcbankcorp currently has a consensus target price of $21.00, indicating a potential upside of 12.18%. Given Fvcbankcorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Fvcbankcorp is more favorable than DNB Bank ASA.

Summary

DNB Bank ASA beats Fvcbankcorp on 8 of the 15 factors compared between the two stocks.

About Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.

About DNB Bank ASA

DNB Bank ASA provides financial services for individual and business customers in Norway and internationally. The company offers savings, current, and pension accounts; fixed rate and security deposits; home and cabin mortgages, car and consumer loans, business loans, and refinancing; car, house, home contents, travel, personal, and non-life insurance product; payment services; and online and mobile banking services, as well as cards. It also provides overdraft facilities; leasing services; factoring, supply chain, and receivable purchase financing services; bank guarantee, secure trading, documentary collection, and letter of credit services; investment banking services, such as mergers and acquisition, equity and debt capital market, shares and securities, mutual funds and trading, and bonds and commodities; and private financing, as well as equity trading, foreign exchange, interest rates, and risk advisory services. In addition, the company offers treasury management, working capital, trade finance, auto lease and equipment financing, and corporate finance services, as well as act as an estate agents. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.