Head-To-Head Analysis: Community Bank System (NYSE:CBU) & BANCO DO BRASIL/S (OTCMKTS:BDORY)

Community Bank System (NYSE:CBU) and BANCO DO BRASIL/S (OTCMKTS:BDORY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Valuation and Earnings

This table compares Community Bank System and BANCO DO BRASIL/S’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Bank System	$704.87 million	3.51	$131.92 million	$3.18	14.75
BANCO DO BRASIL/S	$53.93 billion	0.59	$5.98 billion	$1.10	5.02

BANCO DO BRASIL/S has higher revenue and earnings than Community Bank System. BANCO DO BRASIL/S is trading at a lower price-to-earnings ratio than Community Bank System, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Community Bank System and BANCO DO BRASIL/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Bank System	16.59%	8.93%	0.94%
BANCO DO BRASIL/S	11.84%	18.85%	1.51%

Dividends

Community Bank System pays an annual dividend of $1.80 per share and has a dividend yield of 3.8%. BANCO DO BRASIL/S pays an annual dividend of $0.14 per share and has a dividend yield of 2.5%. Community Bank System pays out 56.6% of its earnings in the form of a dividend. BANCO DO BRASIL/S pays out 12.7% 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. Community Bank System has increased its dividend for 32 consecutive years. Community Bank System is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

73.8% of Community Bank System shares are held by institutional investors. Comparatively, 0.0% of BANCO DO BRASIL/S shares are held by institutional investors. 1.9% of Community Bank System shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Community Bank System and BANCO DO BRASIL/S, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Bank System	1	1	2	0	2.25
BANCO DO BRASIL/S	0	0	0	0	N/A

Community Bank System presently has a consensus price target of $47.67, indicating a potential upside of 1.59%. Given Community Bank System’s higher possible upside, research analysts plainly believe Community Bank System is more favorable than BANCO DO BRASIL/S.

Volatility & Risk

Community Bank System has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, BANCO DO BRASIL/S has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Summary

Community Bank System beats BANCO DO BRASIL/S on 10 of the 16 factors compared between the two stocks.

About Community Bank System

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, institutional, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as interest and noninterest -bearing checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and check credit lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management services; and employee benefit services, as well as operates as a full-service insurance agency that provides personal and commercial lines of insurance, and other risk management products and services. Further, it offers contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration and benefit consulting, fund administration, transfer agency, actuarial and benefit consulting, and health and welfare consulting services; and act as an investor in residential and commercial real estate activities. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and insurance and advisory products, as well as master recordkeeping services. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.

About BANCO DO BRASIL/S

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.