Analyzing China CITIC Bank (OTCMKTS:CHCJY) and Banco Bradesco (NYSE:BBDO)

Banco Bradesco (NYSE:BBDO) and China CITIC Bank (OTCMKTS:CHCJY) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Volatility and Risk

Banco Bradesco has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, China CITIC Bank has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares Banco Bradesco and China CITIC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	9.85%	13.78%	1.11%
China CITIC Bank	20.20%	8.48%	0.72%

Dividends

Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. China CITIC Bank pays an annual dividend of $0.86 per share and has a dividend yield of 4.0%. Banco Bradesco pays out 5.1% of its earnings in the form of a dividend. China CITIC Bank pays out 26.3% 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.

Valuation and Earnings

This table compares Banco Bradesco and China CITIC Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	0.80	$4.24 billion	$0.39	8.13
China CITIC Bank	$47.42 billion	1.12	$9.54 billion	$3.27	6.64

China CITIC Bank has higher revenue and earnings than Banco Bradesco. China CITIC Bank 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 Ratings

This is a breakdown of recent recommendations and price targets for Banco Bradesco and China CITIC Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	0	1	0	3.00
China CITIC Bank	0	0	0	0	0.00

Summary

Banco Bradesco beats China CITIC Bank on 7 of the 13 factors compared between the two stocks.

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.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.