Banco Bradesco (NYSE:BBD) and Macro Bank (NYSE:BMA) Head-To-Head Survey

Macro Bank (NYSE:BMA) and Banco Bradesco (NYSE:BBD) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Macro Bank and Banco Bradesco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macro Bank	$4.72 billion	0.75	$231.60 million	$4.57	12.10
Banco Bradesco	$41.79 billion	0.64	$4.24 billion	$0.46	5.47

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

Volatility & Risk

Macro Bank has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Dividends

Macro Bank pays an annual dividend of $3.67 per share and has a dividend yield of 6.6%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.2%. Macro Bank pays out 80.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Banco Bradesco pays out 6.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Macro Bank and Banco Bradesco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Bank	1	2	4	0	2.43
Banco Bradesco	0	6	1	0	2.14

Macro Bank presently has a consensus price target of $101.25, indicating a potential upside of 83.16%. Banco Bradesco has a consensus price target of $4.05, indicating a potential upside of 61.03%. Given Macro Bank’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Macro Bank is more favorable than Banco Bradesco.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Macro Bank	5.95%	8.65%	2.04%
Banco Bradesco	12.58%	15.06%	1.14%

Summary

Macro Bank beats Banco Bradesco on 9 of the 14 factors compared between the two stocks.

About Macro Bank

Macro Bank, formally Banco Macro S.A., is an Argentine financial services company that provides banking products to individuals, businesses and other organizations. Its services include deposit accounts, personal and commercial loans, credit and debit cards, and digital banking, as well as cash-management and other banking services for businesses. The company serves customers across Argentina through its banking network and online channels. Its history dates to 1976, when it began as a financial institution before expanding into commercial banking.

About Banco Bradesco

Banco Bradesco S.A. is a Brazilian financial services company offering banking, insurance and related services to individuals, businesses and institutions. Its banking products include checking and savings accounts, loans, credit cards, investment services and solutions for corporate clients. The company also operates in insurance, private pensions and capitalization products, and provides services such as asset management and consortium financing. Bradesco serves customers primarily across Brazil through digital channels and a nationwide branch and service network.