Financial Contrast: Banco Bradesco (BBD) vs. Its Rivals

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

Institutional and Insider Ownership

21.4% of shares of all “BANKS – FOREIGN” companies are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by company insiders. Comparatively, 5.3% of shares of all “BANKS – FOREIGN” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Banco Bradesco and its competitors’ 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	18.33%	13.20%	1.06%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	$4.24 billion	10.35
Banco Bradesco Competitors	$735.27 billion	$7.28 billion	12.10

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

Dividends

Banco Bradesco pays an annual dividend of $0.43 per share and has a dividend yield of 10.7%. Banco Bradesco pays out 110.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “BANKS – FOREIGN” companies pay a dividend yield of 3.2% and pay out 39.1% of their earnings in the form of a dividend.

Volatility & Risk

Banco Bradesco has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Banco Bradesco’s competitors have a beta of 0.67, meaning that their average share price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Banco Bradesco and its competitors, 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	1354	4452	4765	234	2.36

As a group, “BANKS – FOREIGN” companies have a potential upside of 4.12%. Given Banco Bradesco’s competitors higher possible upside, analysts clearly believe Banco Bradesco has less favorable growth aspects than its competitors.

Summary

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

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.