Financial Survey: Flagstar Bank, National Association (NYSE:FLG) & Swedbank (OTCMKTS:SWDBY)

Flagstar Bank, National Association (NYSE:FLG) and Swedbank (OTCMKTS:SWDBY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Risk and Volatility

Flagstar Bank, National Association has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Swedbank has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Dividends

Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Swedbank pays an annual dividend of SEK 1.48 per share and has a dividend yield of 3.6%. Flagstar Bank, National Association pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Swedbank pays out 50.2% of its earnings in the form of a dividend. Swedbank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Flagstar Bank, National Association and Swedbank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flagstar Bank, National Association	$4.81 billion	1.07	-$177.00 million	$0.03	412.53
Swedbank	$11.08 billion	4.18	$3.35 billion	SEK 2.95	13.98

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

Institutional & Insider Ownership

67.9% of Flagstar Bank, National Association shares are held by institutional investors. 21.4% of Flagstar Bank, National Association shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Flagstar Bank, National Association and Swedbank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flagstar Bank, National Association	1.08%	0.98%	0.08%
Swedbank	29.45%	14.84%	0.99%

Analyst Ratings

This is a summary of current recommendations for Flagstar Bank, National Association and Swedbank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flagstar Bank, National Association	1	3	10	0	2.64
Swedbank	3	2	1	0	1.67

Flagstar Bank, National Association presently has a consensus price target of $16.96, indicating a potential upside of 37.03%. Given Flagstar Bank, National Association’s stronger consensus rating and higher possible upside, research analysts plainly believe Flagstar Bank, National Association is more favorable than Swedbank.

Summary

Swedbank beats Flagstar Bank, National Association on 9 of the 16 factors compared between the two stocks.

About Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.

About Swedbank

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.