Contrasting BNP Paribas (OTCMKTS:BNPQY) and Banco Do Brasil (OTCMKTS:BDORY)

BNP Paribas (OTCMKTS:BNPQY) and Banco Do Brasil (OTCMKTS:BDORY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Volatility & Risk

BNP Paribas has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares BNP Paribas and Banco Do Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BNP Paribas	22.74%	8.65%	0.42%
Banco Do Brasil	4.99%	15.84%	1.21%

Dividends

BNP Paribas pays an annual dividend of $3.12 per share and has a dividend yield of 8.2%. Banco Do Brasil pays an annual dividend of $0.05 per share and has a dividend yield of 1.2%. BNP Paribas pays out 56.2% of its earnings in the form of a dividend. Banco Do Brasil pays out 10.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current ratings and target prices for BNP Paribas and Banco Do Brasil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNP Paribas	1	2	2	0	2.20
Banco Do Brasil	0	2	1	0	2.33

Valuation and Earnings

This table compares BNP Paribas and Banco Do Brasil”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNP Paribas	$52.85 billion	1.60	$12.65 billion	$5.55	6.82
Banco Do Brasil	$55.92 billion	0.42	$6.57 billion	$0.49	8.45

BNP Paribas has higher earnings, but lower revenue than Banco Do Brasil. BNP Paribas is trading at a lower price-to-earnings ratio than Banco Do Brasil, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

1.2% of BNP Paribas shares are owned by institutional investors. Comparatively, 0.0% of Banco Do Brasil shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

BNP Paribas beats Banco Do Brasil on 8 of the 14 factors compared between the two stocks.

About BNP Paribas

BNP Paribas SA provides various banking and financial products and services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through three divisions: Corporate & Institutional Banking; Commercial, Personal Banking & Services; and Investment & Protection Services. The Corporate & Institutional Banking division offers capital market, securities, investment banking, financing, risk management, cash management, and financial advisory services for corporate clients and institutional investors. The Commercial, Personal Banking & Services division provides financing and equipment leasing services, mobility, and digital banking services, as well as current accounts, savings products, bancassurance, insurance products and services, and consumer loans. The Investment & Protection Services division provides protection, savings, investment, and real estate services to support individuals, professionals, corporate clients, and institutions. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1822 and is headquartered in Paris, France.

About Banco Do Brasil

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.