Comparing UBS Group (NYSE:UBS) & BANCO DO BRASIL/S (OTCMKTS:BDORY)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for BANCO DO BRASIL/S and UBS Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BANCO DO BRASIL/S	0	2	0	0	2.00
UBS Group	1	2	3	1	2.57

Volatility & Risk

BANCO DO BRASIL/S has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares BANCO DO BRASIL/S and UBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BANCO DO BRASIL/S	12.30%	19.30%	1.49%
UBS Group	6.93%	5.93%	0.32%

Institutional and Insider Ownership

0.0% of BANCO DO BRASIL/S shares are owned by institutional investors. 1.0% of UBS Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

BANCO DO BRASIL/S pays an annual dividend of $0.07 per share and has a dividend yield of 1.5%. UBS Group pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. BANCO DO BRASIL/S pays out 6.1% of its earnings in the form of a dividend. UBS Group pays out 14.6% 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. UBS Group has increased its dividend for 5 consecutive years. BANCO DO BRASIL/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares BANCO DO BRASIL/S and UBS Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BANCO DO BRASIL/S	$54.03 billion	0.49	$6.57 billion	$1.15	4.00
UBS Group	$44.79 billion	2.36	$5.09 billion	$1.51	21.86

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

Summary

UBS Group beats BANCO DO BRASIL/S on 9 of the 17 factors compared between the two stocks.

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.

About UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.