Comparing Banco Bradesco (NYSE:BBD) & Standard Chartered (OTCMKTS:SCBFF)

Banco Bradesco (NYSE:BBD) and Standard Chartered (OTCMKTS:SCBFF) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Dividends

Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Standard Chartered pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Banco Bradesco pays out 5.7% of its earnings in the form of a dividend. Standard Chartered pays out 12.8% 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.

Risk & Volatility

Banco Bradesco has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Banco Bradesco and Standard Chartered’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	9.61%	13.16%	1.08%
Standard Chartered	12.27%	10.73%	0.65%

Earnings & Valuation

This table compares Banco Bradesco and Standard Chartered”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$117.80 billion	0.32	$3.20 billion	$0.35	10.10
Standard Chartered	$41.04 billion	1.21	$4.05 billion	$1.88	11.30

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Banco Bradesco and Standard Chartered, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	1	2	3	0	2.33
Standard Chartered	0	1	0	0	2.00

Banco Bradesco currently has a consensus target price of $2.40, indicating a potential downside of 32.11%. Given Banco Bradesco’s stronger consensus rating and higher possible upside, equities analysts plainly believe Banco Bradesco is more favorable than Standard Chartered.

Summary

Banco Bradesco beats Standard Chartered on 8 of the 14 factors compared between the two stocks.

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.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.