Financial Comparison: Bank of Nova Scotia (NYSE:BNS) & Banco Santander Brasil (NYSE:BSBR)

Bank of Nova Scotia (NYSE:BNS) and Banco Santander Brasil (NYSE:BSBR) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Dividends

Bank of Nova Scotia pays an annual dividend of $3.21 per share and has a dividend yield of 4.6%. Banco Santander Brasil pays an annual dividend of $0.27 per share and has a dividend yield of 4.5%. Bank of Nova Scotia pays out 66.7% of its earnings in the form of a dividend. Bank of Nova Scotia has increased its dividend for 14 consecutive years. Bank of Nova Scotia is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Bank of Nova Scotia and Banco Santander Brasil”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Nova Scotia	$52.70 billion	1.64	$5.56 billion	$4.81	14.61
Banco Santander Brasil	$42.52 billion	0.53	$2.29 billion	N/A	N/A

Bank of Nova Scotia has higher revenue and earnings than Banco Santander Brasil.

Volatility and Risk

Bank of Nova Scotia has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Banco Santander Brasil has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Bank of Nova Scotia and Banco Santander Brasil, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Nova Scotia	0	3	2	0	2.40
Banco Santander Brasil	1	1	1	0	2.00

Bank of Nova Scotia currently has a consensus target price of $106.00, suggesting a potential upside of 50.86%. Given Bank of Nova Scotia’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Bank of Nova Scotia is more favorable than Banco Santander Brasil.

Insider & Institutional Ownership

49.1% of Bank of Nova Scotia shares are held by institutional investors. Comparatively, 14.5% of Banco Santander Brasil shares are held by institutional investors. 0.1% of Banco Santander Brasil shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Bank of Nova Scotia and Banco Santander Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Nova Scotia	12.40%	12.49%	0.67%
Banco Santander Brasil	7.10%	10.53%	1.04%

Summary

Bank of Nova Scotia beats Banco Santander Brasil on 12 of the 15 factors compared between the two stocks.

About Bank of Nova Scotia

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. The company offers financial advice and solutions, and banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and retail automotive financing solutions. It also provides business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses. In addition, it provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternatives, and institutional funds. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.

About Banco Santander Brasil

Banco Santander (Brasil) S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates through Commercial Banking and Global Wholesale Banking segments. It offers local loans, commercial financing options, development bank funds, and cash management services; export and import financing, guarantees, structuring of asset services. In addition, the company provides financing and advisory services for infrastructure projects and capital markets instruments, as well as offers equity transactions and mergers and acquisitions services. Further, it offers foreign exchange products, derivatives, and investments to institutional investors, corporate clients, and individuals. Additionally, the company provides research services, as well as offers brokerage services for corporate, institutional, and individual investors. Furthermore, it provides deposits and other bank funding instruments, and debit and credit cards. The company provides financial services and products to its customers through multichannel distribution network comprising branches, mini-branches, ATMs, call centers, Internet banking, and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil. The company operates as a subsidiary of Banco Santander, S.A.