Contrasting Banco Bradesco (BBD) and Its Competitors

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 related businesses based on the strength of its risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.8%. 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 38.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations for Banco Bradesco and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	1	3	0	2.75
Banco Bradesco Competitors	1349	4436	4757	231	2.36

As a group, “BANKS – FOREIGN” companies have a potential upside of 11.41%. Given Banco Bradesco’s rivals higher possible upside, analysts plainly believe Banco Bradesco has less favorable growth aspects than its rivals.

Risk and Volatility

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.

Valuation & Earnings

This table compares Banco Bradesco and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	$4.24 billion	9.37
Banco Bradesco Competitors	$1,083.81 billion	$7.21 billion	11.30

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.

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, 5.3% of shares of all “BANKS – FOREIGN” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers 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	18.20%	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.