Critical Contrast: DBS Group (OTCMKTS:DBSDY) versus National Bank (NYSE:NBHC)

National Bank (NYSE:NBHC) and DBS Group (OTCMKTS:DBSDY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Risk and Volatility

National Bank has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, DBS Group has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Profitability

This table compares National Bank and DBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Bank	22.94%	11.20%	1.34%
DBS Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for National Bank and DBS Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bank	0	2	2	0	2.50
DBS Group	0	1	0	0	2.00

National Bank presently has a consensus target price of $38.63, indicating a potential upside of 4.17%. Given National Bank’s stronger consensus rating and higher possible upside, research analysts plainly believe National Bank is more favorable than DBS Group.

Insider & Institutional Ownership

92.7% of National Bank shares are owned by institutional investors. Comparatively, 0.2% of DBS Group shares are owned by institutional investors. 3.1% of National Bank shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

National Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.0%. DBS Group pays an annual dividend of $6.20 per share and has a dividend yield of 5.9%. National Bank pays out 32.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares National Bank and DBS Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bank	$559.33 million	2.51	$142.05 million	$3.48	10.66
DBS Group	$25.60 billion	2.90	$7.49 billion	N/A	N/A

DBS Group has higher revenue and earnings than National Bank.

Summary

National Bank beats DBS Group on 9 of the 14 factors compared between the two stocks.

About National Bank

National Bank Holdings Corporation operates as the bank holding company for NBH Bank that provides various banking products and financial services to commercial, business, and consumer clients in the United States. It offers deposit products, including checking, savings, money market, and other deposit accounts, including fixed-rate and fixed maturity time deposits. The company also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, food and agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases; non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality, and retail buildings; small business administration loans to support small businesses and entrepreneurs; term loans, line of credits, and real estate secured loans; residential real estate loans; and consumer loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. The company operates through a network of banking centers located in Colorado, the greater Kansas City region, New Mexico, Utah, Wyoming, Idaho, and Texas. It also operates ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. The company was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.

About DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company's Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company's Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.