Head to Head Contrast: Banco Bradesco (NYSE:BBDO) & Bank First National (NASDAQ:BFC)

Banco Bradesco (NYSE:BBDO) and Bank First National (NASDAQ:BFC) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Earnings and Valuation

This table compares Banco Bradesco and Bank First National”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	0.82	$4.24 billion	$0.42	7.67
Bank First National	$243.93 million	7.04	$71.50 million	$7.69	20.12

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Banco Bradesco and Bank First National, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	1	0	0	2.00
Bank First National	0	1	3	1	3.00

Bank First National has a consensus target price of $163.00, suggesting a potential upside of 5.33%. Given Bank First National’s stronger consensus rating and higher probable upside, analysts clearly believe Bank First National is more favorable than Banco Bradesco.

Risk & Volatility

Banco Bradesco has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Bank First National has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. Bank First National pays an annual dividend of $2.20 per share and has a dividend yield of 1.4%. Banco Bradesco pays out 7.1% of its earnings in the form of a dividend. Bank First National pays out 28.6% 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. Bank First National has increased its dividend for 10 consecutive years. Bank First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Banco Bradesco and Bank First National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	10.20%	14.61%	1.11%
Bank First National	27.70%	12.48%	1.73%

Institutional and Insider Ownership

29.9% of Bank First National shares are held by institutional investors. 0.3% of Banco Bradesco shares are held by insiders. Comparatively, 5.0% of Bank First National shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Bank First National beats Banco Bradesco on 13 of the 18 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 Bank First National

Bank First Corporation operates as a holding company for Bank First, N.A. that provides consumer and commercial financial services to businesses, professionals, consumers, associations, individuals, and governmental authorities in Wisconsin. It offers checking, savings, money market, cash management, retirement, and health savings accounts; other time deposits; certificates of deposit; and residential mortgage products. The company's loan products include real estate loans, including commercial real estate, residential mortgage, and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing, and other business purposes; construction and development loans; residential 1-4 family loans; and consumer loans for personal and household purposes, including secured and unsecured installment loans, and revolving lines of credit. It also provides credit cards; ATM processing; insurance; data processing and other information technology; investment and safekeeping; treasury management; and online, telephone, and mobile banking services. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.