Banco Bradesco (BAK) versus Its Rivals Head to Head Comparison

Banco Bradesco (NYSE: BAK) is one of 29 publicly-traded companies in the “Industrial organic chemicals” industry, but how does it compare to its peers? We will compare Banco Bradesco to similar businesses based on the strength of its dividends, institutional ownership, valuation, analyst recommendations, profitability, risk and earnings.

Insider and Institutional Ownership

0.1% of Banco Bradesco shares are owned by institutional investors. Comparatively, 51.5% of shares of all “Industrial organic chemicals” companies are owned by institutional investors. 0.0% of Banco Bradesco shares are owned by insiders. Comparatively, 14.3% of shares of all “Industrial organic chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Banco Bradesco has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Banco Bradesco’s peers have a beta of -0.35, meaning that their average stock price is 135% 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 3.18% 27.43% 3.00%
Banco Bradesco Competitors -31.56% -20.56% -6.05%

Dividends

Banco Bradesco pays an annual dividend of $0.37 per share and has a dividend yield of 2.5%. Banco Bradesco pays out 18.8% of its earnings in the form of a dividend. As a group, “Industrial organic chemicals” companies pay a dividend yield of 2.4% and pay out 36.9% of their earnings in the form of a dividend. Banco Bradesco is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for Banco Bradesco and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Bradesco 0 0 0 0 N/A
Banco Bradesco Competitors 263 791 1001 50 2.40

As a group, “Industrial organic chemicals” companies have a potential downside of 2.48%. Given Banco Bradesco’s peers higher probable upside, analysts plainly believe Banco Bradesco has less favorable growth aspects than its peers.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Banco Bradesco $18.79 billion $773.65 million 7.61
Banco Bradesco Competitors $4.12 billion $332.47 million 2.86

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

Summary

Banco Bradesco beats its peers on 9 of the 12 factors compared.

Banco Bradesco Company Profile

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through five segments: Chemicals, Polyolefins, United States and Europe, Mexico, Vinyls. The Chemicals segment produces and sells ethylene, propylene butadiene, toluene, xylene, cumene, and benzene, as well as gasoline, diesel and liquefied petroleum gas, and other petroleum derivatives; and supplies electric energy, steam, compressed air, and other inputs to second-generation producers. The Polyolefins segment produces and sells polyethylene and polypropylene. The United States and Europe segment produces and sells polypropylene in the United States and Europe. The Mexico segment produces and sells ethylene, high-density polyethylene, and low-density polyethylene in Mexico. The Vinyls segment produces and sells polyvinyl chloride and caustic soda. The company also manufactures, trades in, imports, and exports chemicals, petrochemicals, and fuels; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is based in São Paulo, Brazil.

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