Banco Bradesco (BBD) and The Competition Financial Analysis

Banco Bradesco (NYSE:BBD) is one of 85 public companies in the “BANKS – FOREIGN” industry, but how does it contrast to its rivals? We will compare Banco Bradesco to similar companies based on the strength of its profitability, dividends, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

This is a breakdown of current recommendations for Banco Bradesco and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	1	3	0	2.75
Banco Bradesco Competitors	1349	4435	4757	231	2.36

As a group, “BANKS – FOREIGN” companies have a potential upside of 15.66%. Given Banco Bradesco’s rivals higher probable upside, analysts clearly believe Banco Bradesco has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Banco Bradesco and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	$4.24 billion	8.96
Banco Bradesco Competitors	$298.47 billion	$7.21 billion	10.88

Banco Bradesco’s rivals have higher revenue and earnings than Banco Bradesco. Banco Bradesco is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Banco Bradesco has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Banco Bradesco’s rivals have a beta of 0.65, suggesting that their average stock price is 35% less volatile than the S&P 500.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. Banco Bradesco pays out 7.7% of its earnings in the form of a dividend. As a group, “BANKS – FOREIGN” companies pay a dividend yield of 3.4% and pay out 38.2% of their earnings in the form of a dividend.

Insider & Institutional Ownership

21.4% of shares of all “BANKS – FOREIGN” companies are held by institutional investors. 0.3% of Banco Bradesco shares are held by company insiders. Comparatively, 5.1% of shares of all “BANKS – FOREIGN” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Banco Bradesco and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	10.19%	13.78%	1.11%
Banco Bradesco Competitors	18.19%	13.25%	1.07%

Summary

Banco Bradesco rivals beat Banco Bradesco on 10 of the 15 factors compared.

Banco Bradesco Company Profile

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.