Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY – Get Rating) and Wells Fargo & Company (NYSE:WFC – Get Rating) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Profitability
This table compares Svenska Handelsbanken AB (publ) and Wells Fargo & Company's net margins, return on equity and return on assets.
Get Svenska Handelsbanken AB (publ) alerts:| Net Margins | Return on Equity | Return on Assets | |
| Svenska Handelsbanken AB (publ) | 33.03% | 10.72% | 0.55% |
| Wells Fargo & Company | 19.95% | 10.95% | 0.93% |
Dividends
Svenska Handelsbanken AB (publ) pays an annual dividend of $0.19 per share and has a dividend yield of 3.9%. Wells Fargo & Company pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Svenska Handelsbanken AB (publ) pays out 34.5% of its earnings in the form of a dividend. Wells Fargo & Company pays out 31.2% 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. Wells Fargo & Company has raised its dividend for 2 consecutive years.
Insider & Institutional Ownership
72.2% of Wells Fargo & Company shares are held by institutional investors. 0.1% of Wells Fargo & Company shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.Analyst Ratings
This is a breakdown of current recommendations for Svenska Handelsbanken AB (publ) and Wells Fargo & Company, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Svenska Handelsbanken AB (publ) | 2 | 2 | 3 | 0 | 2.14 |
| Wells Fargo & Company | 0 | 3 | 12 | 0 | 2.80 |
Wells Fargo & Company has a consensus target price of $55.03, indicating a potential upside of 16.81%. Given Wells Fargo & Company's stronger consensus rating and higher probable upside, analysts plainly believe Wells Fargo & Company is more favorable than Svenska Handelsbanken AB (publ).
Volatility & Risk
Svenska Handelsbanken AB (publ) has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Wells Fargo & Company has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Earnings and Valuation
This table compares Svenska Handelsbanken AB (publ) and Wells Fargo & Company's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Svenska Handelsbanken AB (publ) | $5.80 billion | 3.34 | $2.28 billion | $0.55 | 8.89 |
| Wells Fargo & Company | $82.41 billion | 2.18 | $21.55 billion | $3.85 | 12.24 |
Wells Fargo & Company has higher revenue and earnings than Svenska Handelsbanken AB (publ). Svenska Handelsbanken AB (publ) is trading at a lower price-to-earnings ratio than Wells Fargo & Company, indicating that it is currently the more affordable of the two stocks.
Summary
Wells Fargo & Company 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 (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, China, Germany, France, 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. 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, group and health, and travel insurance products; forestry and farming banking products; and online and mobile banking services. 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 the 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 Wells Fargo & Company
(Get Rating)
Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Its financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. The Commercial Banking segment provides financial solutions to private, family owned, and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services. The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services to corporate, commercial real estate, government, and institutional clients. Its products and services comprise corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services. The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net worth, and ultra-high-net worth clients. It also operates through financial advisors. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.
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