Danske Bank A/S (OTCMKTS:DNKEY) & Sturgis Bancorp (OTCMKTS:STBI) Financial Survey

Sturgis Bancorp (OTCMKTS:STBI) and Danske Bank A/S (OTCMKTS:DNKEY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Profitability

This table compares Sturgis Bancorp and Danske Bank A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sturgis Bancorp	3.88%	N/A	N/A
Danske Bank A/S	41.10%	13.02%	0.60%

Valuation and Earnings

This table compares Sturgis Bancorp and Danske Bank A/S”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturgis Bancorp	$49.68 million	0.74	$6.02 million	$1.19	14.29
Danske Bank A/S	$7.61 billion	3.46	$3.09 billion	$1.82	8.45

Danske Bank A/S has higher revenue and earnings than Sturgis Bancorp. Danske Bank A/S is trading at a lower price-to-earnings ratio than Sturgis Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sturgis Bancorp and Danske Bank A/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sturgis Bancorp	0	0	0	0	N/A
Danske Bank A/S	0	0	0	0	N/A

Dividends

Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 4.0%. Danske Bank A/S pays an annual dividend of $0.77 per share and has a dividend yield of 5.0%. Sturgis Bancorp pays out 57.1% of its earnings in the form of a dividend. Danske Bank A/S pays out 42.3% 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. Danske Bank A/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Sturgis Bancorp has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Danske Bank A/S has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Summary

Danske Bank A/S beats Sturgis Bancorp on 10 of the 11 factors compared between the two stocks.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.

About Danske Bank A/S

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.