Bay Commercial Bank (NASDAQ:BCML) & Banco Bradesco (NYSE:BBDO) Financial Survey

Bay Commercial Bank (NASDAQ:BCML) and Banco Bradesco (NYSE:BBDO) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Earnings and Valuation

This table compares Bay Commercial Bank and Banco Bradesco”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bay Commercial Bank	$141.48 million	2.34	$23.93 million	$1.20	25.24
Banco Bradesco	$41.79 billion	0.81	$4.24 billion	$0.42	7.56

Banco Bradesco has higher revenue and earnings than Bay Commercial Bank. Banco Bradesco is trading at a lower price-to-earnings ratio than Bay Commercial Bank, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Bay Commercial Bank has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Insider & Institutional Ownership

66.2% of Bay Commercial Bank shares are held by institutional investors. 2.9% of Bay Commercial Bank shares are held by insiders. Comparatively, 0.3% of Banco Bradesco 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 Bay Commercial Bank and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bay Commercial Bank	9.20%	6.98%	0.90%
Banco Bradesco	10.20%	14.61%	1.11%

Analyst Ratings

This is a summary of recent ratings for Bay Commercial Bank and Banco Bradesco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bay Commercial Bank	1	2	1	0	2.00
Banco Bradesco	0	1	0	0	2.00

Bay Commercial Bank presently has a consensus price target of $34.00, suggesting a potential upside of 12.25%. Given Bay Commercial Bank’s higher probable upside, equities research analysts clearly believe Bay Commercial Bank is more favorable than Banco Bradesco.

Dividends

Bay Commercial Bank pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. Bay Commercial Bank pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Banco Bradesco pays out 7.1% of its earnings in the form of a dividend. Bay Commercial Bank has increased its dividend for 3 consecutive years. Bay Commercial Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Bay Commercial Bank beats Banco Bradesco on 9 of the 16 factors compared between the two stocks.

About Bay Commercial Bank

BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.

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.