Associated Banc (NYSE:ASB) vs. DNB Bank ASA (OTCMKTS:DNBBY) Head-To-Head Comparison

DNB Bank ASA (OTCMKTS:DNBBY) and Associated Banc (NYSE:ASB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Dividends

DNB Bank ASA pays an annual dividend of $1.41 per share and has a dividend yield of 4.1%. Associated Banc pays an annual dividend of $0.96 per share and has a dividend yield of 3.1%. DNB Bank ASA pays out 50.4% of its earnings in the form of a dividend. Associated Banc pays out 33.2% 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. Associated Banc has raised its dividend for 13 consecutive years.

Institutional and Insider Ownership

83.0% of Associated Banc shares are held by institutional investors. 0.7% of Associated Banc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DNB Bank ASA	21.06%	13.69%	1.05%
Associated Banc	19.87%	10.75%	1.13%

Analyst Recommendations

This is a breakdown of current ratings for DNB Bank ASA and Associated Banc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNB Bank ASA	3	4	1	1	2.00
Associated Banc	0	6	6	0	2.50

Associated Banc has a consensus target price of $32.70, indicating a potential upside of 6.08%. Given Associated Banc’s stronger consensus rating and higher possible upside, analysts clearly believe Associated Banc is more favorable than DNB Bank ASA.

Risk and Volatility

DNB Bank ASA has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Associated Banc has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares DNB Bank ASA and Associated Banc”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNB Bank ASA	$19.14 billion	2.77	$4.20 billion	$2.80	12.19
Associated Banc	$2.46 billion	2.33	$474.78 million	$2.89	10.67

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

Summary

Associated Banc beats DNB Bank ASA on 10 of the 18 factors compared between the two stocks.

About DNB Bank ASA

DNB Bank ASA is a Norwegian banking and financial services company and a central part of the DNB Group. Based in Oslo, it serves individuals, businesses, institutions and public-sector organizations, with Norway as its primary market and operations in selected international markets. The bank provides everyday banking services, including deposits, payment and card services, mortgages and other loans, as well as savings and investment products. Its business offerings include corporate lending, cash management, trade finance, advisory services and capital-markets products, with expertise serving industries such as shipping and energy.

About Associated Banc

Associated Banc-Corp is a bank holding company headquartered in Green Bay, Wisconsin. Its principal subsidiary, Associated Bank, provides banking and financial services to individuals, businesses, and organizations. The company offers consumer and commercial banking products, including deposit accounts, mortgage and other lending, business financing, and cash-management services. It also provides wealth management and related financial services. Associated Bank primarily serves customers in Wisconsin, Illinois, and Minnesota through its branches and other service channels.