Comparing Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) & Akbank T.A.S. (OTCMKTS:AKBTY)

Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLYGet Free Report) and Akbank T.A.S. (OTCMKTS:AKBTYGet Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

0.1% of Svenska Handelsbanken AB (publ) shares are held by institutional investors. 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Svenska Handelsbanken AB (publ) and Akbank T.A.S., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Svenska Handelsbanken AB (publ) 0 0 1 0 3.00
Akbank T.A.S. 0 1 0 0 2.00

Dividends

Svenska Handelsbanken AB (publ) pays an annual dividend of $0.28 per share and has a dividend yield of 5.4%. Akbank T.A.S. pays an annual dividend of $0.15 per share and has a dividend yield of 5.4%. Svenska Handelsbanken AB (publ) pays out 42.4% of its earnings in the form of a dividend. Akbank T.A.S. pays out 11.2% 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. Akbank T.A.S. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Svenska Handelsbanken AB (publ) and Akbank T.A.S.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Svenska Handelsbanken AB (publ) $8.04 billion 2.56 $2.13 billion $0.66 7.89
Akbank T.A.S. $8.80 billion N/A $3.67 billion $1.34 2.06

Akbank T.A.S. has higher revenue and earnings than Svenska Handelsbanken AB (publ). Akbank T.A.S. is trading at a lower price-to-earnings ratio than Svenska Handelsbanken AB (publ), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Svenska Handelsbanken AB (publ) and Akbank T.A.S.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Svenska Handelsbanken AB (publ) 17.87% 13.69% 0.74%
Akbank T.A.S. 33.72% 42.44% 5.07%

Risk and Volatility

Svenska Handelsbanken AB (publ) has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Akbank T.A.S. has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Summary

Akbank T.A.S. beats Svenska Handelsbanken AB (publ) on 8 of the 13 factors compared between the two stocks.

About Svenska Handelsbanken AB (publ)

(Get Free Report)

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, China, Germany, France, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, group and health, and travel insurance products; forestry and farming banking products; and online and mobile banking services. In addition, the company offers transaction, trade finance, cash management, risk management, and foreign exchange services, as well as various banking services for children and young people. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.

About Akbank T.A.S.

(Get Free Report)

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through: Retail Banking; Commercial Banking, SME Banking, Corporate-Investment and Private Banking; and Wealth Management Treasury segments. The company's retail banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and timely and permanent solutions for corporate customers' working capital management, delivering cash management services based on customers' requests that include collection and payment services and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related treasury products. Further, it provides financial leasing services, stock exchange brokerage services, and portfolio management, as well as offers payment services and issues electronic money. The company was incorporated in 1948 and is headquartered in Istanbul, Turkey.

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