Head to Head Contrast: Grupo Financiero Galicia (NASDAQ:GGAL) vs. Banco Bradesco (NYSE:BBDO)

Grupo Financiero Galicia (NASDAQ:GGAL) and Banco Bradesco (NYSE:BBDO) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Grupo Financiero Galicia and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Galicia	8.89%	22.73%	4.34%
Banco Bradesco	9.76%	12.96%	1.07%

Valuation & Earnings

This table compares Grupo Financiero Galicia 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
Grupo Financiero Galicia	$10.79 billion	0.39	$1.79 billion	$6.79	4.23
Banco Bradesco	$37.55 billion	0.82	$3.20 billion	$0.35	8.24

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Grupo Financiero Galicia and Banco Bradesco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Galicia	1	2	3	1	2.57
Banco Bradesco	0	1	0	0	2.00

Grupo Financiero Galicia currently has a consensus price target of $74.00, indicating a potential upside of 157.93%. Given Grupo Financiero Galicia’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Grupo Financiero Galicia is more favorable than Banco Bradesco.

Dividends

Grupo Financiero Galicia pays an annual dividend of $0.71 per share and has a dividend yield of 2.5%. Banco Bradesco pays an annual dividend of $0.15 per share and has a dividend yield of 5.2%. Grupo Financiero Galicia pays out 10.5% of its earnings in the form of a dividend. Banco Bradesco pays out 42.9% 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.

Risk and Volatility

Grupo Financiero Galicia has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Summary

Grupo Financiero Galicia beats Banco Bradesco on 9 of the 15 factors compared between the two stocks.

About Grupo Financiero Galicia

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. It also offers personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services, as well as savings, deposits, and checking accounts related services. In addition, the company offers financing products; consumer finance and digital banking services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, and financial trusts. Further, it provides robbery, personal accident, life collective, home, life, integral, pet, surety, and technical insurance products. Additionally, the company offers private banking services to high net worth individuals; and operates digital investment platform. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.

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; overdraft and agribusiness loans; debit and business cards; financial and security services; consortium products; car, personal accident, dental, travel, and life insurance; investment products; pension products; foreign currency exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.