Critical Analysis: Banco Bradesco (BBD) & Its Rivals

Banco Bradesco (NYSE:BBD) is one of 920 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Banco Bradesco to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Banco Bradesco and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	6	1	0	2.14
Banco Bradesco Competitors	7450	30146	27697	1450	2.35

Banco Bradesco currently has a consensus price target of $4.05, indicating a potential upside of 58.82%. As a group, “Banks” companies have a potential upside of 17.31%. Given Banco Bradesco’s higher possible upside, analysts clearly believe Banco Bradesco is more favorable than its competitors.

Earnings and Valuation

This table compares Banco Bradesco and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$123.82 billion	$4.24 billion	5.54
Banco Bradesco Competitors	$41.97 billion	$2.41 billion	19.05

Banco Bradesco has higher revenue and earnings than its competitors. Banco Bradesco is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

47.9% of shares of all “Banks” companies are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. Banco Bradesco pays out 4.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% of their earnings in the form of a dividend.

Profitability

This table compares Banco Bradesco and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	12.58%	15.06%	1.14%
Banco Bradesco Competitors	15.48%	9.50%	0.93%

Volatility and Risk

Banco Bradesco has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Banco Bradesco’s competitors have a beta of 0.60, indicating that their average stock price is 40% less volatile than the S&P 500.

Summary

Banco Bradesco competitors beat Banco Bradesco on 9 of the 15 factors compared.

Banco Bradesco Company Profile

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.