Mid Penn Bancorp (NASDAQ:MPB) & Nordea Bank (OTCMKTS:NRDBY) Head to Head Review

Nordea Bank (OTCMKTS:NRDBY) and Mid Penn Bancorp (NASDAQ:MPB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Nordea Bank and Mid Penn Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nordea Bank	1	3	3	1	2.50
Mid Penn Bancorp	0	1	3	0	2.75

Mid Penn Bancorp has a consensus price target of $39.50, indicating a potential upside of 11.35%. Given Mid Penn Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Mid Penn Bancorp is more favorable than Nordea Bank.

Profitability

This table compares Nordea Bank and Mid Penn Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nordea Bank	22.82%	15.18%	0.71%
Mid Penn Bancorp	17.55%	8.82%	1.13%

Volatility & Risk

Nordea Bank has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Nordea Bank shares are owned by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are owned by institutional investors. 7.2% of Mid Penn Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Nordea Bank and Mid Penn Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nordea Bank	$23.46 billion	2.87	$5.48 billion	$1.61	12.29
Mid Penn Bancorp	$350.61 million	2.56	$56.25 million	$2.83	12.53

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

Dividends

Nordea Bank pays an annual dividend of $0.35 per share and has a dividend yield of 1.8%. Mid Penn Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Nordea Bank pays out 21.7% of its earnings in the form of a dividend. Mid Penn Bancorp pays out 32.5% 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.

About Nordea Bank

Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates & Institutions, and Asset & Wealth Management segments. The Personal Banking segment provides various financial services to customers through mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and cards and finance solutions to corporate and personal customers. The Large Corporates & Institutions segment provides financing, cash management and payment, investment banking, capital market products, and securities services to corporate and institutional customers. The Asset & Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. It also offers account-based products, such as lending and deposit; project finance services, asset-based financing through leasing, hire purchase, and factoring, as well as sales to finance partners, such as dealers, vendors, and retailers; financial instruments or arrangement for financial instruments, including currencies, commodities, stocks, and bonds; and asset management, including investment funds, discretionary management, portfolio advice, equity trading, and pension accounts, as well as life insurance and pension products and services. Nordea Bank Abp was founded in 1820 and is headquartered in Helsinki, Finland.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.