Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY – Get Rating) and Hope Bancorp (NASDAQ:HOPE – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Svenska Handelsbanken AB (publ) and Hope Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Svenska Handelsbanken AB (publ)||$6.16 billion||3.10||$1.70 billion||$0.49||10.02|
|Hope Bancorp||$610.13 million||2.87||$204.57 million||$1.81||8.03|
Svenska Handelsbanken AB (publ) has higher revenues and profits than Hope Bancorp. Hope Bancorp is trading at a lower price-to-earnings ratio than Svenska Handelsbanken AB (publ), indicating that it is currently the more affordable of the two stocks.
Svenska Handelsbanken AB (publ) pays an annual dividend of $0.19 per share and has a dividend yield of 3.9%. Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.9%. Svenska Handelsbanken AB (publ) distributes 38.8% of its profits as a dividend. Hope Bancorp pays 30.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years.
This table compares the net margins, return on equity and return on assets of Svenska Handelsbanken AB (publ) and Hope Bancorp.
|Net margins||Return on equity||return on assets|
|Svenska Handelsbanken AB (publ)||N / A||N / A||N / A|
Insider and Institutional Ownership
85.2% of Hope Bancorp shares are held by institutional investors. 5.1% of Hope Bancorp shares are held by insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.
Volatility and risk
Svenska Handelsbanken AB (publ) has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. In comparison, Hope Bancorp has a beta of 1.29, suggesting that its price is 29% more volatile than the S&P. 500.
This is a breakdown of the current price recommendations and targets for Svenska Handelsbanken AB (publ) and Hope Bancorp, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Svenska Handelsbanken AB (publ)||4||3||seven||0||2.21|
Hope Bancorp has a consensus target price of $16.00, indicating a potential upside of 10.04%. Given Hope Bancorp’s likely higher upside, analysts clearly believe that Hope Bancorp is more favorable than Svenska Handelsbanken AB (publ).
Hope Bancorp beats Svenska Handelsbanken AB (publ) on 9 of the 16 factors compared between the two stocks.
About Svenska Handelsbanken AB (publ) (Get a rating)
Svenska Handelsbanken AB (publ) provides various retail and corporate banking products and services mainly in Sweden, UK, Norway, Netherlands, USA, Luxembourg, China, Germany, France and in Poland. The company offers savings, transaction, business, currency and investment accounts, as well as cash, forestry and agriculture accounts; mortgage and pledge loans, and private loans; mutual fund; retirement products; credit and debit cards; and payment and reconciliation services. It also provides financing for investments, such as equipment, cars, computers and other inventory, as well as vehicle and real estate financing services; green loans and advisory services; investment services and other financing services; medical, group, health and travel insurance products; forestry and agricultural banking products; and online and mobile banking. In addition, the company offers transaction, trade finance, cash management, risk management and foreign exchange services, as well as various banking services for children and young people. It operates approximately 214 branches in Sweden, 196 in Great Britain, 41 in Norway, 42 in Denmark, 27 in Finland and 28 in the Netherlands. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.
About Hope Bancorp (Get a rating)
Hope Bancorp, Inc. operates as a bank holding company for Bank of Hope which provides banking services to small and medium businesses and individuals in the United States. The company accepts personal and business checks, money market, savings, term deposits and individual retirement accounts. Its lending products include commercial loans to businesses for various purposes, such as working capital, purchase of inventory, refinancing of debt, business acquisitions and other business-related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgages, home equity, auto loans, credit cards, and personal loans. The Company also offers trade finance services, including issuing and negotiating letters of credit, as well as managing documentary collections; warehouse lines of credit to mortgage originators; and commercial equipment lease financing. Additionally, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking; debit card services; exchange services, safe deposit boxes and other usual banking services; online banking services; and ATM services. As of December 31, 2021, the company operated 47 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia and Alabama; SBA loan origination offices in Atlanta, Houston, Dallas, Denver, Portland, Seattle, Fremont and Southern California; and a representative office in Seoul, Korea. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.
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