Avanza Bank vs SEB

Avanza Bank and SEB are two of the leading banks in Sweden, each offering unique opportunities for investors. Avanza Bank, known for its user-friendly online trading platform, has seen a surge in popularity among retail investors. On the other hand, SEB, a traditional banking institution with a strong investment banking presence, has a long history of providing financial services to both retail and institutional clients. Both stocks offer potential for growth and stability in the dynamic banking industry.

Avanza Bank or SEB?

When comparing Avanza Bank and SEB, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Avanza Bank and SEB.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Avanza Bank has a dividend yield of 5.02%, while SEB has a dividend yield of 2.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Avanza Bank reports a 5-year dividend growth of -6.51% year and a payout ratio of 87.39%. On the other hand, SEB reports a 5-year dividend growth of 4.14% year and a payout ratio of 36.36%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Avanza Bank P/E ratio at 17.43 and SEB's P/E ratio at 13.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Avanza Bank P/B ratio is 7.04 while SEB's P/B ratio is 1.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Avanza Bank has seen a 5-year revenue growth of 3.31%, while SEB's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Avanza Bank's ROE at 36.55% and SEB's ROE at 13.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are kr227.80 for Avanza Bank and €97.20 for SEB. Over the past year, Avanza Bank's prices ranged from kr181.70 to kr284.80, with a yearly change of 56.74%. SEB's prices fluctuated between €84.65 and €120.20, with a yearly change of 42.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.