Head-To-Head Comparison: Atlantic Union Bankshares (NYSE:AUB) & Banco Bradesco (NYSE:BBDO)

Atlantic Union Bankshares (NYSE:AUB) 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 risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Profitability

This table compares Atlantic Union Bankshares and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlantic Union Bankshares	21.97%	10.55%	1.41%
Banco Bradesco	10.20%	14.61%	1.11%

Dividends

Atlantic Union Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 3.8%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. Atlantic Union Bankshares pays out 44.2% of its earnings in the form of a dividend. Banco Bradesco pays out 7.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Atlantic Union Bankshares has raised its dividend for 14 consecutive years. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Atlantic Union Bankshares and Banco Bradesco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlantic Union Bankshares	$2.04 billion	2.71	$273.71 million	$3.35	11.55
Banco Bradesco	$41.79 billion	0.81	$4.24 billion	$0.42	7.61

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Atlantic Union Bankshares and Banco Bradesco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlantic Union Bankshares	1	2	5	0	2.50
Banco Bradesco	0	1	0	0	2.00

Atlantic Union Bankshares presently has a consensus price target of $46.14, indicating a potential upside of 19.31%. Given Atlantic Union Bankshares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Atlantic Union Bankshares is more favorable than Banco Bradesco.

Risk and Volatility

Atlantic Union Bankshares has a beta of 0.78, indicating that its share price is 22% 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.

Institutional & Insider Ownership

78.6% of Atlantic Union Bankshares shares are held by institutional investors. 1.0% of Atlantic Union Bankshares shares are held by insiders. Comparatively, 0.3% of Banco Bradesco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Atlantic Union Bankshares beats Banco Bradesco on 13 of the 17 factors compared between the two stocks.

About Atlantic Union Bankshares

Atlantic Union Bankshares Corporation operates as the bank holding company for Atlantic Union Bank that provides banking and related financial products and services to consumers and businesses in the United States. It operates in two segments, Wholesale Banking and Consumer Banking. The company accepts various deposit products, including checking, savings, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes, as well as debit and credit cards. In addition, it provides treasury management and capital market, wealth management, private banking, trust, financial and retirement planning, brokerage, investment management, equipment finance, mortgage banking, and insurance products and services. The company offers products and services through full-service branches and ATMs, as well as through its mobile and internet banking. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Glen Allen, Virginia.

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.