Analyzing Banco Bradesco (BBD) & Its Peers

Banco Bradesco (NYSE:BBD) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Banco Bradesco to related companies based on the strength of its valuation, risk, analyst recommendations, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

47.8% of shares of all “Banks” companies are held by institutional investors. 0.3% of Banco Bradesco shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Banco Bradesco and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	6	1	0	2.14
Banco Bradesco Competitors	7463	30182	27751	1456	2.35

Banco Bradesco presently has a consensus price target of $4.05, indicating a potential upside of 63.64%. As a group, “Banks” companies have a potential upside of 15.64%. Given Banco Bradesco’s higher probable upside, equities research analysts plainly believe Banco Bradesco is more favorable than its peers.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	$4.24 billion	5.38
Banco Bradesco Competitors	$9.95 billion	$2.42 billion	17.38

Banco Bradesco has higher revenue and earnings than its peers. Banco Bradesco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Banco Bradesco has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Banco Bradesco’s peers have a beta of 0.52, suggesting that their average share price is 48% less volatile than the S&P 500.

Profitability

This table compares Banco Bradesco and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	12.58%	15.06%	1.14%
Banco Bradesco Competitors	15.66%	9.44%	0.93%

Dividends

Banco Bradesco pays an annual dividend of $0.20 per share and has a dividend yield of 8.1%. Banco Bradesco pays out 43.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Banco Bradesco lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Banco Bradesco peers beat Banco Bradesco on 9 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.