Comparing Danske Bank A/S (OTCMKTS:DNKEY) and Solera National Bancorp (OTCMKTS:SLRK)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Danske Bank A/S and Solera National Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank A/S	1	1	1	1	2.50
Solera National Bancorp	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Danske Bank A/S	41.90%	13.35%	0.63%
Solera National Bancorp	24.01%	N/A	N/A

Risk & Volatility

Danske Bank A/S has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Solera National Bancorp has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Earnings & Valuation

This table compares Danske Bank A/S and Solera National Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank A/S	$8.18 billion	3.67	$3.43 billion	$2.00	8.85
Solera National Bancorp	$75.25 million	0.53	$18.07 million	$4.20	2.23

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

Summary

Danske Bank A/S beats Solera National Bancorp on 11 of the 12 factors compared between the two stocks.

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.

About Solera National Bancorp

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.