Critical Comparison: Skandinaviska (SVKEF) vs. The Competition

Skandinaviska (OTCMKTS:SVKEF) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Skandinaviska to related companies based on the strength of its analyst recommendations, dividends, valuation, profitability, earnings, risk and institutional ownership.

Profitability

This table compares Skandinaviska and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skandinaviska	21.03%	15.43%	0.85%
Skandinaviska Competitors	15.65%	9.44%	0.93%

Earnings and Valuation

This table compares Skandinaviska and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Skandinaviska	$23.09 billion	$3.17 billion	12.01
Skandinaviska Competitors	$37.93 billion	$2.42 billion	21.06

Skandinaviska’s peers have higher revenue, but lower earnings than Skandinaviska. Skandinaviska is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Skandinaviska has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Skandinaviska’s peers have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

48.0% of shares of all “Banks” companies are held by institutional investors. 9.7% of shares of all “Banks” companies 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 summary of current recommendations for Skandinaviska and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skandinaviska	0	7	0	0	2.00
Skandinaviska Competitors	7483	30220	27793	1473	2.35

As a group, “Banks” companies have a potential upside of 16.79%. Given Skandinaviska’s peers stronger consensus rating and higher possible upside, analysts plainly believe Skandinaviska has less favorable growth aspects than its peers.

Summary

Skandinaviska peers beat Skandinaviska on 10 of the 13 factors compared.

About Skandinaviska

Skandinaviska Enskilda Banken AB (publ) provides corporate, retail, investment, and private banking services. The company operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Private Wealth Management & Family Office, Baltic, Life, and Investment Management divisions. It offers treasury advisory services; factoring and receivable, trade, and export financing; markets and trading, such as equities, fixed income, commodities, and foreign exchange; financial services, including investment, financing, and ownership; and shipping and real estate finance. In addition, it offers venture capital for entrepreneurs and innovators; private wealth management; investor services; asset management and life insurance products that include funds, tailored portfolios, and life insurance; fixed income, commodities, debt capital market, and equity research; investment banking; venture capital; and cash management products comprising integration service, file integration network, and payment solutions. The company serves large corporates, financial institutions, private individuals, and small and medium-sized companies. It operates in Sweden, Norway, Denmark, Finland, Estonia, Latvia, Lithuania, Germany, the United Kingdom, Austria, the United States, Ireland, Luxembourg, Switzerland, Brazil, India, China, the Netherlands, Singapore, Russia, Poland, Hong Kong, Ukraine, and internationally. The company was founded in 1856 and is headquartered in Stockholm, Sweden.