Analyzing Swedbank AB (publ) (OTCMKTS:SWDBY) and United Overseas Bank (OTC:UOVEY)

Swedbank AB (publ) (OTCMKTS:SWDBY) and United Overseas Bank (OTC:UOVEY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Dividends

Swedbank AB (publ) pays an annual dividend of SEK 1.35 per share and has a dividend yield of 5.7%. United Overseas Bank pays an annual dividend of $2.68 per share and has a dividend yield of 4.7%. Swedbank AB (publ) pays out 46.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Swedbank AB (publ) and United Overseas Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swedbank AB (publ)	1	1	0	0	1.50
United Overseas Bank	0	0	0	1	4.00

Volatility & Risk

Swedbank AB (publ) has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, United Overseas Bank has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Swedbank AB (publ) and United Overseas Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swedbank AB (publ)	$17.47 billion	1.54	$3.30 billion	SEK 2.93	8.15
United Overseas Bank	$20.86 billion	2.28	$4.25 billion	N/A	N/A

United Overseas Bank has higher revenue and earnings than Swedbank AB (publ).

Profitability

This table compares Swedbank AB (publ) and United Overseas Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swedbank AB (publ)	23.64%	16.95%	1.13%
United Overseas Bank	N/A	N/A	N/A

Insider & Institutional Ownership

0.0% of United Overseas Bank shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

United Overseas Bank beats Swedbank AB (publ) on 7 of the 12 factors compared between the two stocks.

About Swedbank AB (publ)

Swedbank AB (publ) provides various banking products and services to private and corporate customers in Sweden, Estonia, Latvia, Lithuania, Norway, the United States, Finland, Denmark, Luxembourg, and China. The company operates through three business areas: Swedish Banking, Baltic Banking, and Corporates and Institutions. It offers savings accounts, mutual funds and insurance savings, pension savings, institutional asset management, and other savings and investment products; private residential lending, consumer financing, corporate lending, leasing, and other financing products, as well as trade finance and factoring services; and current accounts, cash handling, debit and credit cards, and card acquiring, as well as domestic, international, mobile, document, and other payment products. The company also provides equity trading, structured products, corporate finance, custody services, fixed income and currency trading, and other capital market products; and administrative services, treasury operations, real estate brokerage and management services, legal services, safe deposit boxes, and other services. In addition, it offers pension insurance and plan, life, endowment insurance, and personal insurance products; investment management, investment banking, and mortgage lending services; and transaction banking services comprising cash management, securities, account, and clearing and settlement services, as well as Internet and mobile banking services. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.

About United Overseas Bank

United Overseas Bank Limited, together with its subsidiaries, provides banking products and services. The company’s Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing products for personal and small enterprise customers. Its Group Wholesale Banking segment offers financing, trade, cash management, and capital markets solutions, as well as advisory and treasury products for medium and large enterprises, local corporations, multi-national corporations, financial institutions, government-linked entities, financial sponsors, and property funds. The company’s Global Markets segment provides foreign exchange, interest rate, credit, commodities, equities, and structured investment products; and manages funding and liquidity. Its Other segment offers investment management, property, and insurance services. The company also provides mobile and internet banking services. It operates through a network of approximately 500 branches, including wealth and privilege banking centres, private bank suites, business and commercial banking centres, and offices in 19 countries and territories in the Asia Pacific, Europe, and North America; and approximately 1.4 million automated teller machines. The company was formerly known as United Chinese Bank and changed its name to United Overseas Bank Limited in 1965. United Overseas Bank Limited was incorporated in 1935 and is headquartered in Singapore.