United Bancorporation of Alabama (OTCMKTS:UBAB – Get Free Report) and Banco Bradesco (NYSE:BBDO – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Risk and Volatility
United Bancorporation of Alabama has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for United Bancorporation of Alabama and Banco Bradesco, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Bancorporation of Alabama||0||0||0||0||N/A|
United Bancorporation of Alabama pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.1%. United Bancorporation of Alabama pays out 8.0% of its earnings in the form of a dividend. Banco Bradesco pays out 12.0% 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. Banco Bradesco has raised its dividend for 1 consecutive years. United Bancorporation of Alabama is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
5.6% of United Bancorporation of Alabama shares are held by institutional investors. Comparatively, 0.0% of Banco Bradesco shares are held by institutional investors. 0.3% of Banco Bradesco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares United Bancorporation of Alabama and Banco Bradesco’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|United Bancorporation of Alabama||$61.78 million||2.24||$18.68 million||$6.24||6.24|
|Banco Bradesco||$103.05 billion||0.29||$4.06 billion||$0.25||11.16|
Banco Bradesco has higher revenue and earnings than United Bancorporation of Alabama. United Bancorporation of Alabama is trading at a lower price-to-earnings ratio than Banco Bradesco, indicating that it is currently the more affordable of the two stocks.
This table compares United Bancorporation of Alabama and Banco Bradesco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Bancorporation of Alabama||34.60%||19.94%||1.83%|
United Bancorporation of Alabama beats Banco Bradesco on 8 of the 14 factors compared between the two stocks.
About United Bancorporation of Alabama
United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides banking services. The company offers checking and savings accounts, certificates of deposit, individual retirement accounts, small business programs, business solutions, merchant services, and cash management services. It also provides various lending services, such as personal loans, business loans, lines of credit, and equipment loans; real estate loans for the agricultural community and working lines of credit; and overdraft services. In addition, the company offers debit cards, prepaid cards, Visa credit cards, gift cards, and safe deposit boxes. Further, it provides check cashing, convenience, remote deposit, mobile check deposit, personal storage compartments, Web payment options, insurance products, investment and brokerage, and online and mobile banking services. United Bancorporation of Alabama, Inc. was founded in 1904 and is based in Atmore, Alabama.
About Banco Bradesco
Banco Bradesco S.A., together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segments, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; debit and business cards; financial and security services; consortium products; auto, personal accident, dental, travel, and life insurance; investment products; pension products; real estate and vehicle auctions; cash management, and foreign trade and exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.
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