Comparing Banco Bradesco (NYSE:BBDO) & KBC Group (OTCMKTS:KBCSY)

Banco Bradesco (NYSE:BBDO) and KBC Group (OTCMKTS:KBCSY) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	8.95%	14.15%	1.10%
KBC Group	14.98%	13.51%	0.93%

Analyst Recommendations

This is a breakdown of recent recommendations for Banco Bradesco and KBC Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	0	1	0	3.00
KBC Group	1	4	1	0	2.00

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. KBC Group pays an annual dividend of $3.19 per share and has a dividend yield of 5.0%. Banco Bradesco pays out 7.7% of its earnings in the form of a dividend. KBC Group pays out 63.3% 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	0.74	$4.24 billion	$0.39	7.47
KBC Group	$26.56 billion	2.02	$4.04 billion	$5.04	12.76

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

Risk and Volatility

Banco Bradesco has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, KBC Group has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

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 KBC Group

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. The company offers demand deposits and savings accounts; home and mortgage loans; consumer finance and SME funding services; credit, investment fund and asset management, and life and non-life insurance; and cash management, payments, trade finance, lease, money market, capital market products, and stockbroking services. It also provides digital and mobile banking services. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.