Danske Bank (OTCMKTS:DNKEY) vs. First Hawaiian (NASDAQ:FHB) Financial Comparison

First Hawaiian (NASDAQ:FHB) and Danske Bank (OTCMKTS:DNKEY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for First Hawaiian and Danske Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Hawaiian	3	6	2	0	1.91
Danske Bank	0	2	4	1	2.86

First Hawaiian currently has a consensus price target of $30.25, suggesting a potential upside of 19.80%. Given First Hawaiian’s higher probable upside, research analysts plainly believe First Hawaiian is more favorable than Danske Bank.

Volatility & Risk

First Hawaiian has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Danske Bank has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Earnings & Valuation

This table compares First Hawaiian and Danske Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Hawaiian	$1.17 billion	2.63	$276.27 million	$2.30	10.98
Danske Bank	$8.61 billion	5.49	$3.49 billion	$2.26	12.82

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

Institutional & Insider Ownership

97.6% of First Hawaiian shares are held by institutional investors. 0.7% of First Hawaiian shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.1%. Danske Bank pays an annual dividend of $1.57 per share and has a dividend yield of 5.4%. First Hawaiian pays out 45.2% of its earnings in the form of a dividend. Danske Bank pays out 69.5% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Hawaiian	24.41%	10.27%	1.19%
Danske Bank	40.85%	13.80%	0.63%

Summary

Danske Bank beats First Hawaiian on 10 of the 17 factors compared between the two stocks.

About First Hawaiian

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.

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.