Critical Analysis: Westpac Banking (NYSE:WBK) & NORDEA Bk AB SW/S (NYSE:NRDBY)

NORDEA Bk AB SW/S (OTCMKTS:NRDBY) and Westpac Banking (NYSE:WBK) 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, analyst recommendations, profitability, valuation, risk, earnings and dividends.


This table compares NORDEA Bk AB SW/S and Westpac Banking’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NORDEA Bk AB SW/S 21.62% 7.07% 0.39%
Westpac Banking N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for NORDEA Bk AB SW/S and Westpac Banking, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NORDEA Bk AB SW/S 0 2 0 0 2.00
Westpac Banking 2 3 2 0 2.00

Volatility & Risk

NORDEA Bk AB SW/S has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Westpac Banking has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares NORDEA Bk AB SW/S and Westpac Banking’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NORDEA Bk AB SW/S $13.11 billion 2.22 $3.63 billion N/A N/A
Westpac Banking $28.76 billion 2.43 $6.16 billion $1.74 11.64

Westpac Banking has higher revenue and earnings than NORDEA Bk AB SW/S.

Institutional and Insider Ownership

0.1% of NORDEA Bk AB SW/S shares are held by institutional investors. Comparatively, 0.6% of Westpac Banking shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.


NORDEA Bk AB SW/S pays an annual dividend of $0.52 per share and has a dividend yield of 7.2%. Westpac Banking pays an annual dividend of $1.29 per share and has a dividend yield of 6.4%. Westpac Banking pays out 74.1% of its earnings in the form of a dividend. Westpac Banking has increased its dividend for 2 consecutive years.


Westpac Banking beats NORDEA Bk AB SW/S on 8 of the 13 factors compared between the two stocks.

NORDEA Bk AB SW/S Company Profile

Nordea Bank Abp provides various banking products and services for personal customers, small and medium businesses, and corporates and financial institutions in Europe. It operates through Personal Banking, Commercial & Business Banking, Wholesale Banking, and Wealth Management segments. It offers personal banking products comprising corporate and household deposits; and household mortgage and consumer loans, as well as loans to corporates. The company also provides business banking services; transaction banking services consisting of cards, trade finance, cash management, and mobile- and ecommerce; and investment credits, working capital, and consumer credits. In addition, it offers a range of financing, cash management and payment services, investment banking, capital markets products, and securities services; manages customers' assets and provides financial advice to high net worth individuals and institutional investors; and provides a range of pension, endowment, and risk products. Further, the company offers trade finance services; and online and mobile banking services. It operates approximately 450 branches. The company was founded in 1820 and is headquartered in Helsinki, Finland.

Westpac Banking Company Profile

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. It operates through five divisions: Consumer Bank, Business Bank, BT Financial Group, Westpac Institutional Bank, and Westpac New Zealand. It offers everyday banking, savings, term deposit, moving to Australia, under 21 and student, business one, community solutions one, not-for-profit savings, and foreign currency accounts; term and farm management deposits; debit, credit, and travel money cards; home, personal, investment, small business, and commercial loans; and equipment, automotive, cash flow, property, insurance premium, corporate and structured finance, and trade and supply chain financing services. It also provides home and content, landlord, car, travel, boat, caravan and trailer, life, credit card and loan repayment, income protection, business, farm pack, person income, and business overheads insurance products; superannuation and retirement products; investment portfolios; instalment warrants; and trading, financial advisory, wealth, foreign currency exchange, international payment, cash flow management, international trade, and import and export services. In addition, it offers industry specific banking and treasury services; other services, such as emergency cash, online and telephone banking, ATMs, unclaimed money, travel center, margin lending, and banking services to migrants moving to Australia; and mobile wallets. Further, it provides capital advisory and fund management, transactional and private banking, and financial market services. It serves individuals; micro, small, and medium enterprises; and commercial, corporate, institutional, and government customers. The company was formerly known as Bank of New South Wales and changed its name to Westpac Banking Corporation in October 1982. The company was founded in 1817 and is headquartered in Sydney, Australia.

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