Head to Head Comparison: ING Groep (NYSE:ING) versus NORDEA Bk AB SW/S (NYSE:NRDBY)

ING Groep (NYSE:ING) and NORDEA Bk AB SW/S (OTCMKTS:NRDBY) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Analyst Ratings

This is a summary of current ratings for ING Groep and NORDEA Bk AB SW/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ING Groep 1 2 4 0 2.43
NORDEA Bk AB SW/S 0 2 0 0 2.00

ING Groep currently has a consensus price target of $11.15, indicating a potential downside of 1.50%. Given ING Groep’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ING Groep is more favorable than NORDEA Bk AB SW/S.

Risk & Volatility

ING Groep has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, NORDEA Bk AB SW/S has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Dividends

ING Groep pays an annual dividend of $0.80 per share and has a dividend yield of 7.1%. NORDEA Bk AB SW/S pays an annual dividend of $0.52 per share and has a dividend yield of 7.7%. ING Groep pays out 48.8% of its earnings in the form of a dividend. NORDEA Bk AB SW/S pays out 57.8% 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. ING Groep has increased its dividend for 3 consecutive years.

Institutional & Insider Ownership

3.5% of ING Groep shares are owned by institutional investors. Comparatively, 0.1% of NORDEA Bk AB SW/S shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ING Groep and NORDEA Bk AB SW/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ING Groep 25.28% 8.81% 0.50%
NORDEA Bk AB SW/S 21.62% 6.71% 0.39%

Earnings & Valuation

This table compares ING Groep and NORDEA Bk AB SW/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ING Groep $21.36 billion 2.06 $5.62 billion $1.64 6.90
NORDEA Bk AB SW/S $13.11 billion 2.08 $3.63 billion $0.90 7.49

ING Groep has higher revenue and earnings than NORDEA Bk AB SW/S. ING Groep is trading at a lower price-to-earnings ratio than NORDEA Bk AB SW/S, indicating that it is currently the more affordable of the two stocks.

Summary

ING Groep beats NORDEA Bk AB SW/S on 13 of the 16 factors compared between the two stocks.

About ING Groep

ING Groep N.V., a financial institution, provides various banking products and services to individuals, small and medium-sized enterprises, and mid-corporates. It operates in Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking segments. The company accepts various deposits, such as current and savings accounts; and offers business lending products, as well as consumer lending products, such as residential mortgage loans, term loans, and revolver and personal loans. It also provides mortgage, payment, savings, investment, and secured and unsecured lending products and services. In addition, the company offers specialized lending, corporate finance, and debt and equity markets solutions, as well as working capital, cash management, and trade and treasury services; and financial market, trade finance, overdraft, and foreign exchange transaction services. The company operates in the Netherlands, Belgium, North America, Latin America, Asia, Australia, and rest of Europe. ING Groep N.V. was founded in 1991 and is headquartered in Amsterdam, the Netherlands.

About NORDEA Bk AB SW/S

Nordea Bank Abp provides various banking products and services for personal customers, small and medium businesses, and corporates and financial institutions in Europe. It operates through Personal Banking, Commercial & Business Banking, Wholesale Banking, and Wealth Management segments. It offers personal banking products comprising corporate and household deposits; and household mortgage and consumer loans, as well as loans to corporates. The company also provides business banking services; transaction banking services consisting of cards, trade finance, cash management, and mobile- and ecommerce; and investment credits, working capital, and consumer credits. In addition, it offers a range of financing, cash management and payment services, investment banking, capital markets products, and securities services; manages customers' assets and provides financial advice to high net worth individuals and institutional investors; and provides a range of pension, endowment, and risk products. Further, the company offers trade finance services; and online and mobile banking services. It operates approximately 450 branches. The company was founded in 1820 and is headquartered in Helsinki, Finland.

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