Critical Analysis: BOC Hong Kong (OTCMKTS:BHKLY) & Banco Do Brasil (OTCMKTS:BDORY)

Banco Do Brasil (OTCMKTS:BDORY) and BOC Hong Kong (OTCMKTS:BHKLY) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Banco Do Brasil and BOC Hong Kong, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Do Brasil	0	3	0	0	2.00
BOC Hong Kong	0	1	0	0	2.00

Risk & Volatility

Banco Do Brasil has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, BOC Hong Kong has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500.

Dividends

Banco Do Brasil pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. BOC Hong Kong pays an annual dividend of $2.90 per share and has a dividend yield of 3.0%. Banco Do Brasil pays out 7.7% of its earnings in the form of a dividend.

Institutional and Insider Ownership

0.0% of Banco Do Brasil shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Do Brasil	4.99%	15.84%	1.21%
BOC Hong Kong	N/A	N/A	N/A

Valuation & Earnings

This table compares Banco Do Brasil and BOC Hong Kong”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Do Brasil	$55.92 billion	0.44	$6.57 billion	$0.39	10.97
BOC Hong Kong	$20.67 billion	2.49	$4.90 billion	N/A	N/A

Banco Do Brasil has higher revenue and earnings than BOC Hong Kong.

Summary

Banco Do Brasil beats BOC Hong Kong on 7 of the 10 factors compared between the two stocks.

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.

About BOC Hong Kong

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, China, and internationally. The company operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance. It offers savings, current, and time deposit accounts; mortgage plans; corporate deposits, and payroll and e-cheques services. The company also offers cross-border financial and remittance services; and securities, funds, foreign exchange services, precious metals and FX margin services, currency linked investments, bonds, market information services, monthly savings plans, and structured products, as well as business and personal loans. In addition, it provides business and accident protection, medical, travel and leisure, family protection, RMB, and personal life insurance products; and credit cards. Further, the company offers safe deposit box, e-bill, and payment services; personal and corporate RMB, and RMB clearing bank services; business comprehensive, property, liability, group, and retailer comprehensive insurance plans; small business, asset-pledge, and syndicated loans; accounts receivable, machinery and equipment, SME green, and project financing; cross-border services for corporate customers; business banking, trade finance and services, investment, treasury, corporate collection and payment, e-commerce, and card services; and custody and cash management services. Additionally, it provides wealth management and overdraft services; mandatory provident fund schemes; and private and corporate banking services, as well as internet, phone, and mobile banking services; and trade related products and other credit facilities. BOC Hong Kong (Holdings) Limited was founded in 1917 and is based in Central, Hong Kong. BOC Hong Kong (Holdings) Limited operates as a subsidiary of BOC Hong Kong (BVI) Limited.