Financial Survey: BANCO BRADESCO/S (NYSE:BBDO) vs. Bancorpsouth Bank (NYSE:BXS)

BANCO BRADESCO/S (NYSE:BBDO) and Bancorpsouth Bank (NYSE:BXS) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

0.0% of BANCO BRADESCO/S shares are held by institutional investors. Comparatively, 63.2% of Bancorpsouth Bank shares are held by institutional investors. 2.6% of Bancorpsouth Bank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares BANCO BRADESCO/S and Bancorpsouth Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BANCO BRADESCO/S 16.16% 19.01% 1.82%
Bancorpsouth Bank 22.39% 10.30% 1.26%

Volatility and Risk

BANCO BRADESCO/S has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Bancorpsouth Bank has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Dividends

BANCO BRADESCO/S pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Bancorpsouth Bank pays an annual dividend of $0.74 per share and has a dividend yield of 2.5%. Bancorpsouth Bank pays out 33.2% of its earnings in the form of a dividend. BANCO BRADESCO/S has increased its dividend for 5 consecutive years and Bancorpsouth Bank has increased its dividend for 6 consecutive years. Bancorpsouth Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and target prices for BANCO BRADESCO/S and Bancorpsouth Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BANCO BRADESCO/S 0 0 0 0 N/A
Bancorpsouth Bank 0 6 0 0 2.00

Bancorpsouth Bank has a consensus price target of $31.60, suggesting a potential upside of 7.45%. Given Bancorpsouth Bank’s higher possible upside, analysts plainly believe Bancorpsouth Bank is more favorable than BANCO BRADESCO/S.

Valuation and Earnings

This table compares BANCO BRADESCO/S and Bancorpsouth Bank’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BANCO BRADESCO/S $32.99 billion 1.83 $5.22 billion N/A N/A
Bancorpsouth Bank $935.53 million 3.16 $221.32 million $2.23 13.19

BANCO BRADESCO/S has higher revenue and earnings than Bancorpsouth Bank.

Summary

Bancorpsouth Bank beats BANCO BRADESCO/S on 9 of the 14 factors compared between the two stocks.

BANCO BRADESCO/S Company Profile

Banco Bradesco S.A., together with its subsidiaries, provides banking and financial products and services to individuals, corporates, and businesses in Brazil and internationally. It operates through two segments, Banking and Insurance. The company accepts checking and savings accounts, demand deposits, time deposits, and interbank deposits. The company's loan products include direct to consumer loans and leasing facilities to purchase light vehicles, heavy vehicles, and motorcycles; payroll-deducted loans for public pensioners and civil servants; housing loans and working capital loans; and overdrafts and credit cards. It also provides fund management and treasury services, foreign exchange operations, corporate finance, and investment banking services; hedge and finance operations; and insurance products, which include automobile, health, life, accident, and property insurance, as well as pension plans, real estate ventures, and capitalization bonds. In addition, the company offers mutual funds, leasing, asset management and administration, international banking, consortium administration, debit cards, telephone, and Internet banking services. It operates through a network of 4,617 branches, including 1 branch each in New York, Grand Cayman, and London; 76,200 service units; and 58,100 ATMs. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.

Bancorpsouth Bank Company Profile

BancorpSouth Bank provides commercial banking and financial services to individuals and small-to-medium size businesses. It offers various deposit products, including interest and noninterest bearing demand deposits, and saving and other time deposits. The company also provides commercial loans, including term loans, lines of credit, equipment and receivable financing, and agricultural loans; a range of short-to-medium term secured and unsecured commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential subdivisions. In addition, it offers fixed and adjustable rate residential mortgage loans secured by owner-occupied property; residential construction loans; second mortgage loans; and home equity lines of credit, as well as non-residential consumer loans that consist of automobile, recreation vehicle, boat, personal, and deposit account secured loans, as well as issues credit cards. Further, the company operates as an agent for the sale of commercial lines of insurance; and a line of property and casualty, life, health, and employee benefits products and services. Additionally, it provides investment brokerage, and personal trust and estate services. As of April 25, 2018, the company operated through 279 full service branch locations, as well mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee, Texas, and Illinois. The company was formerly known as BancorpSouth, Inc. and changed its name to BancorpSouth Bank in October 2017. BancorpSouth Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

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