DNB Bank ASA (OTCMKTS:DNBBY) & VersaBank (NASDAQ:VBNK) Critical Comparison

DNB Bank ASA (OTCMKTS:DNBBYGet Rating) and VersaBank (NASDAQ:VBNKGet Rating) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Insider and Institutional Ownership

0.1% of DNB Bank ASA shares are owned by institutional investors. Comparatively, 24.3% of VersaBank shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

DNB Bank ASA pays an annual dividend of $1.62 per share and has a dividend yield of 8.2%. VersaBank pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. DNB Bank ASA pays out 89.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VersaBank pays out 11.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for DNB Bank ASA and VersaBank, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DNB Bank ASA 1 4 5 0 2.40
VersaBank 0 0 0 1 4.00

DNB Bank ASA presently has a consensus target price of $201.67, indicating a potential upside of 921.10%. Given DNB Bank ASA’s higher probable upside, research analysts plainly believe DNB Bank ASA is more favorable than VersaBank.

Earnings & Valuation

This table compares DNB Bank ASA and VersaBank’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DNB Bank ASA $7.12 billion 4.30 $2.95 billion $1.82 10.85
VersaBank $75.30 million 2.67 $17.80 million $0.67 10.96

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

Profitability

This table compares DNB Bank ASA and VersaBank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DNB Bank ASA 39.63% 10.10% 0.82%
VersaBank 21.25% 8.29% 1.07%

Summary

DNB Bank ASA beats VersaBank on 9 of the 15 factors compared between the two stocks.

About DNB Bank ASA

(Get Rating)

DNB Bank ASA provides financial services for retail and corporate customers in Norway and internationally. The company offers personal banking products and services, including savings and investment products; loans, such as home mortgages, and car and consumer loans; pet, home and property, travel, and personal insurance products, as well as insurance products for vehicles; retirement savings products; foreign exchange and treasury activities; and Internet and mobile banking services, as well as cards. It also provides business banking products and services comprising savings and investment products consisting of savings accounts, fixed rate deposits, exchange traded products, bonds and commercial papers, asset management, and equity services; financing, such as installment loans, overdraft facility, bank guarantees, leasing, factoring, and trade and export financing services; transaction banking services; research, commodities, bonds and commercial papers, corporate finance, debt capital market, equities, foreign exchange and interest rates, and securities services; and Internet services, including online equity trading, online FX trading, e-confirmation, equities execution, and investor and margin accounts, as well as pension services. In addition, the company provides investment banking services, such as mergers and acquisition, and equity and debt capital market services; foreign exchange, interest rates, equities, commodities, fixed income, research, private equity, and securities services; and corporate banking services. Further, it offers private banking services. The company offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.

About VersaBank

(Get Rating)

VersaBank, a schedule I chartered bank, provides various banking products and services in Canada. The company offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, daily interest savings accounts, and tax-free savings accounts, as well as deposit insurance products. It also provides lending services, including point of sale financing that involves purchasing loan and lease receivables from finance companies operating in various industries; and commercial banking services comprising commercial real estate, public sector/infrastructure financing, condominium financing, and residential mortgages. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.

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