Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) & Capitol Federal Financial (NASDAQ:CFFN) Head-To-Head Contrast

Capitol Federal Financial (NASDAQ:CFFN) and Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Earnings & Valuation

This table compares Capitol Federal Financial and Svenska Handelsbanken Ab Publ”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capitol Federal Financial	$445.56 million	2.43	$86.40 million	$0.69	12.46
Svenska Handelsbanken Ab Publ	$21.75 billion	1.51	$2.42 billion	$0.70	11.89

Svenska Handelsbanken Ab Publ has higher revenue and earnings than Capitol Federal Financial. Svenska Handelsbanken Ab Publ is trading at a lower price-to-earnings ratio than Capitol Federal Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Capitol Federal Financial and Svenska Handelsbanken Ab Publ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capitol Federal Financial	19.39%	8.39%	0.89%
Svenska Handelsbanken Ab Publ	17.64%	14.23%	0.72%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Capitol Federal Financial and Svenska Handelsbanken Ab Publ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capitol Federal Financial	0	2	1	1	2.75
Svenska Handelsbanken Ab Publ	3	1	1	0	1.60

Capitol Federal Financial currently has a consensus target price of $9.25, suggesting a potential upside of 7.56%. Given Capitol Federal Financial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Capitol Federal Financial is more favorable than Svenska Handelsbanken Ab Publ.

Institutional and Insider Ownership

88.5% of Capitol Federal Financial shares are owned by institutional investors. 2.8% of Capitol Federal Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 4.0%. Svenska Handelsbanken Ab Publ pays an annual dividend of $0.58 per share and has a dividend yield of 7.0%. Capitol Federal Financial pays out 49.3% of its earnings in the form of a dividend. Svenska Handelsbanken Ab Publ pays out 82.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Capitol Federal Financial has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Summary

Capitol Federal Financial beats Svenska Handelsbanken Ab Publ on 11 of the 16 factors compared between the two stocks.

About Capitol Federal Financial

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.

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.