Banco Santander (NYSE:SAN) vs. Banco Do Brasil (OTCMKTS:BDORY) Financial Comparison

Banco Santander (NYSE:SAN) and Banco Do Brasil (OTCMKTS:BDORY) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

9.2% of Banco Santander shares are held by institutional investors. Comparatively, 0.0% of Banco Do Brasil shares are held by institutional investors. 9.5% of Banco Santander shares are held by company 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 & Earnings

This table compares Banco Santander and Banco Do Brasil”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Santander	$66.96 billion	2.27	$13.61 billion	$0.90	11.35
Banco Do Brasil	$55.92 billion	0.42	$6.57 billion	$0.49	8.37

Banco Santander has higher revenue and earnings than Banco Do Brasil. Banco Do Brasil is trading at a lower price-to-earnings ratio than Banco Santander, indicating that it is currently the more affordable of the two stocks.

Dividends

Banco Santander pays an annual dividend of $0.18 per share and has a dividend yield of 1.8%. Banco Do Brasil pays an annual dividend of $0.06 per share and has a dividend yield of 1.5%. Banco Santander pays out 20.0% of its earnings in the form of a dividend. Banco Do Brasil pays out 12.2% 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.

Profitability

This table compares Banco Santander and Banco Do Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Santander	17.30%	11.98%	0.71%
Banco Do Brasil	4.99%	15.84%	1.21%

Analyst Recommendations

This is a breakdown of current ratings for Banco Santander and Banco Do Brasil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Santander	0	2	2	0	2.50
Banco Do Brasil	0	2	1	0	2.33

Volatility & Risk

Banco Santander has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Summary

Banco Santander beats Banco Do Brasil on 12 of the 15 factors compared between the two stocks.

About Banco Santander

Banco Santander, S.A. provides various financial services worldwide. The company operates through Retail Banking, Santander Corporate & Investment Banking, Wealth Management & Insurance, and PagoNxt segments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. The company also provides asset management and private banking services; and insurance products. In addition, it offers corporate and investment banking services; and digital payment solutions. Further, it offers online banking and financial services to retail, business, institutional, corporate, private banking and university customers and clients. The company was formerly known as Banco Santander Central Hispano SA and changed its name to Banco Santander, S.A. in February 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.

About Banco Do Brasil

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.