Contrasting Banco Bradesco (BBD) & Its Peers

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

Risk and Volatility

Banco Bradesco has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Banco Bradesco’s competitors have a beta of 0.65, suggesting that their average share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Banco Bradesco and its competitors, 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	1347	4435	4752	231	2.36

As a group, “BANKS – FOREIGN” companies have a potential upside of 15.31%. Given Banco Bradesco’s competitors higher possible upside, analysts plainly believe Banco Bradesco has less favorable growth aspects than its competitors.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	$4.24 billion	8.96
Banco Bradesco Competitors	$1,040.13 billion	$7.19 billion	10.92

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.

Insider & Institutional Ownership

25.4% of shares of all “BANKS – FOREIGN” companies are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by insiders. Comparatively, 4.9% of shares of all “BANKS – FOREIGN” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

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	18.17%	13.25%	1.07%

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. 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 3.5% and pay out 38.6% of their earnings in the form of a dividend.

Summary

Banco Bradesco competitors 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.