Analyzing Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) and First of Long Island (NASDAQ:FLIC)

Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) and First of Long Island (NASDAQ:FLIC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Insider and Institutional Ownership

48.3% of First of Long Island shares are held by institutional investors. 6.3% of First of Long Island shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Svenska Handelsbanken AB (publ) and First of Long Island, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Svenska Handelsbanken AB (publ)	1	0	0	0	1.00
First of Long Island	0	1	0	0	2.00

First of Long Island has a consensus price target of $13.00, indicating a potential upside of 4.92%. Given First of Long Island’s stronger consensus rating and higher possible upside, analysts clearly believe First of Long Island is more favorable than Svenska Handelsbanken AB (publ).

Earnings and Valuation

This table compares Svenska Handelsbanken AB (publ) and First of Long Island”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Svenska Handelsbanken AB (publ)	$17.44 billion	1.48	$2.60 billion	$0.65	10.03
First of Long Island	$85.27 million	3.29	$17.08 million	$0.75	16.52

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

Dividends

Svenska Handelsbanken AB (publ) pays an annual dividend of $0.59 per share and has a dividend yield of 9.0%. First of Long Island pays an annual dividend of $0.84 per share and has a dividend yield of 6.8%. Svenska Handelsbanken AB (publ) pays out 90.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First of Long Island pays out 112.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Svenska Handelsbanken AB (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Svenska Handelsbanken AB (publ) has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, First of Long Island has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Svenska Handelsbanken AB (publ) and First of Long Island’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Svenska Handelsbanken AB (publ)	14.89%	13.62%	0.73%
First of Long Island	9.52%	4.74%	0.43%

Summary

Svenska Handelsbanken AB (publ) beats First of Long Island on 8 of the 15 factors compared between the two stocks.

About Svenska Handelsbanken AB (publ)

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, Finland, 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, as well as foreign exchange rate 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, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.

About First of Long Island

The First of Long Island Corporation operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations. The company offers business and small business checking, personal checking, negotiable order of withdrawal, interest on lawyer, escrow service, rent security, personal and nonpersonal money market, savings, time deposit, and individual retirement accounts. It also provides commercial and residential mortgage, commercial and industrial, small business credit scored, Small Business Administration, construction and land development, consumer, and home equity lines/loans, as well as standby letters of credit; debit or credit cards; and overdraft facilities. In addition, the company offers life insurance, investment management, trust, estate and custody, retail investment, bill payment, lockbox, ACH, safe deposit box rental, wire transfer, money order, checkbook printing, check, ATM, and online and mobile banking services. The First of Long Island Corporation was founded in 1927 and is headquartered in Melville, New York.