Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY – Get Rating) and Truist Financial (NYSE:TFC – Get Rating) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
0.2% of Svenska Handelsbanken AB (publ) shares are owned by institutional investors. Comparatively, 72.5% of Truist Financial shares are owned by institutional investors. 0.3% of Truist Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Get Svenska Handelsbanken AB (publ) alerts:Analyst Recommendations
This is a summary of current ratings and price targets for Svenska Handelsbanken AB (publ) and Truist Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Svenska Handelsbanken AB (publ) | 2 | 3 | 2 | 0 | 2.00 |
| Truist Financial | 1 | 9 | 7 | 0 | 2.35 |
Truist Financial has a consensus price target of $46.24, indicating a potential upside of 47.34%. Given Truist Financial's stronger consensus rating and higher probable upside, analysts clearly believe Truist Financial is more favorable than Svenska Handelsbanken AB (publ).
Profitability
This table compares Svenska Handelsbanken AB (publ) and Truist Financial's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Svenska Handelsbanken AB (publ) | 33.03% | 10.93% | 0.56% |
| Truist Financial | 22.81% | 12.37% | 1.22% |
Valuation and Earnings
This table compares Svenska Handelsbanken AB (publ) and Truist Financial's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Svenska Handelsbanken AB (publ) | $5.80 billion | 3.07 | $2.28 billion | $0.55 | 8.18 |
| Truist Financial | $25.36 billion | 1.64 | $6.26 billion | $4.49 | 6.99 |
Truist Financial has higher revenue and earnings than Svenska Handelsbanken AB (publ). Truist Financial 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.
Volatility and Risk
Svenska Handelsbanken AB (publ) has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Truist Financial has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Dividends
Svenska Handelsbanken AB (publ) pays an annual dividend of $0.28 per share and has a dividend yield of 6.2%. Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 6.6%. Svenska Handelsbanken AB (publ) pays out 50.9% of its earnings in the form of a dividend. Truist Financial pays out 46.3% 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. Truist Financial has raised its dividend for 1 consecutive years. Truist Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Truist Financial beats Svenska Handelsbanken AB (publ) on 14 of the 17 factors compared between the two stocks.
About Svenska Handelsbanken AB (publ)
(Get Rating)
Svenska Handelsbanken AB engages in the provision of financial and banking services. It operates through the following segments: Sweden, United Kingdom, Denmark, Finland, Norway, The Netherlands, Capital Markets, and Others. The Capital Markets segment refers to the investment bank, including securities trading, and investment advisory services. The company was founded in 1871 and is headquartered in Stockholm, Sweden.
About Truist Financial
(Get Rating)
Truist Financial Corp. is a financial holding company, which engages in the provision of banking services to individuals, businesses, and municipalities. It operates through the following segments: Consumer Banking and Wealth, Corporate and Commercial Banking, Insurance Holdings, and Other, Treasury & Corporate. The Consumer Banking and Wealth segment consists of Retail Community Banking, National Consumer Finance, Services, Payments, Wealth Management and Banking Products and Professional Services and Mortgage Banking. The Corporate and Commercial Banking segment consists of Corporate and Investment Banking, Commercial Community Banking and Commercial Real Estate. The Insurance Holdings segment provides property and casualty, employee benefits and life insurance to businesses and individuals and also provides small business and corporate services, such as workers compensation and professional liability, as well as surety coverage and title insurance. It offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer fi
Receive News & Ratings for Svenska Handelsbanken AB (publ) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Svenska Handelsbanken AB (publ) and related companies with MarketBeat.com's FREE daily email newsletter.