Contrasting Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) and Banco Bradesco (NYSE:BBDO)

Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) and Banco Bradesco (NYSE:BBDO) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Volatility and Risk

Svenska Handelsbanken Ab Publ has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Valuation & Earnings

This table compares Svenska Handelsbanken Ab Publ and Banco Bradesco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Svenska Handelsbanken Ab Publ	$17.44 billion	N/A	$2.60 billion	$0.62	10.53
Banco Bradesco	$37.55 billion	0.82	$3.20 billion	$0.35	8.24

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Svenska Handelsbanken Ab Publ and Banco Bradesco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Svenska Handelsbanken Ab Publ	2	5	0	0	1.71
Banco Bradesco	0	0	0	0	0.00

Profitability

This table compares Svenska Handelsbanken Ab Publ and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Svenska Handelsbanken Ab Publ	15.69%	13.22%	0.71%
Banco Bradesco	9.76%	12.96%	1.07%

Dividends

Svenska Handelsbanken Ab Publ pays an annual dividend of $0.60 per share and has a dividend yield of 9.2%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Svenska Handelsbanken Ab Publ pays out 96.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Banco Bradesco pays out 5.7% of its earnings in the form of a dividend.

Summary

Svenska Handelsbanken Ab Publ beats Banco Bradesco on 6 of the 11 factors compared between the two stocks.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.

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.