Reviewing Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) and Huntington Bancshares (NASDAQ:HBAN)

Huntington Bancshares (NASDAQ:HBAN) and Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Huntington Bancshares 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
Huntington Bancshares	$7.39 billion	2.86	$1.94 billion	$1.23	11.83
Svenska Handelsbanken AB (publ)	$17.44 billion	1.47	$2.60 billion	$0.65	9.97

Svenska Handelsbanken AB (publ) has higher revenue and earnings than Huntington Bancshares. Svenska Handelsbanken AB (publ) is trading at a lower price-to-earnings ratio than Huntington Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 4.3%. Svenska Handelsbanken AB (publ) pays an annual dividend of $0.59 per share and has a dividend yield of 9.1%. Huntington Bancshares pays out 50.4% of its earnings in the form of a dividend. Svenska Handelsbanken AB (publ) pays out 90.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Huntington Bancshares has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Svenska Handelsbanken AB (publ) has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

80.7% of Huntington Bancshares shares are held by institutional investors. 0.9% of Huntington Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Huntington Bancshares and Svenska Handelsbanken AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Bancshares	16.23%	11.23%	0.99%
Svenska Handelsbanken AB (publ)	14.89%	13.62%	0.73%

Analyst Ratings

This is a breakdown of recent recommendations for Huntington Bancshares and Svenska Handelsbanken AB (publ), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Bancshares	1	3	14	1	2.79
Svenska Handelsbanken AB (publ)	1	0	0	0	1.00

Huntington Bancshares currently has a consensus target price of $18.24, indicating a potential upside of 25.33%. Given Huntington Bancshares’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Huntington Bancshares is more favorable than Svenska Handelsbanken AB (publ).

Summary

Huntington Bancshares beats Svenska Handelsbanken AB (publ) on 13 of the 17 factors compared between the two stocks.

About Huntington Bancshares

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. The company offers financial products and services to consumer and business customers, including deposits, lending, payments, mortgage banking, dealer financing, investment management, trust, brokerage, insurance, and other financial products and services. It also provides 24-hour grace, asterisk-free checking, money scout, $50 safety zone, standby cash, early pay, instant access, savings goal getter, and Huntington heads up; digitally powered consumer and business financial solutions to consumer lending, regional banking, branch banking, and wealth management customers; direct and indirect consumer loans, as well as dealer finance loans and deposits; and private banking, wealth management and legacy planning through investment and portfolio management, fiduciary administration and trust, institutional custody, and full-service retail brokerage investment services. The company offers equipment financing, asset-based lending, distribution finance, structured lending, and municipal financing solutions, as well as Huntington ChoicePay. In addition, it offers lending, liquidity, treasury management and other payment services, and capital markets; government and non-profits, healthcare, technology and telecommunications, franchises, financial sponsors, and global services; and corporate risk management, institutional sales and trading, debt and equity issuance, and additional advisory services. The company offers its products through a network of channels, including branches and ATMs, online and mobile banking, and through customer call centers to customers in middle market banking, corporate, specialty, and government banking, asset finance, commercial real estate banking, and capital markets. The company was founded in 1866 and is headquartered in Columbus, Ohio.

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.