Critical Survey: Banco Do Brasil (OTCMKTS:BDORY) & OceanFirst Financial (NASDAQ:OCFC)

Banco Do Brasil (OTCMKTS:BDORY) and OceanFirst Financial (NASDAQ:OCFC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares Banco Do Brasil and OceanFirst Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Do Brasil	$66.83 billion	0.37	$2.45 billion	$0.41	10.54
OceanFirst Financial	$687.16 million	1.62	$70.98 million	$0.85	22.72

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

Profitability

This table compares Banco Do Brasil and OceanFirst Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Do Brasil	3.34%	8.86%	0.67%
OceanFirst Financial	6.38%	5.94%	0.68%

Insider and Institutional Ownership

0.0% of Banco Do Brasil shares are held by institutional investors. Comparatively, 71.0% of OceanFirst Financial shares are held by institutional investors. 5.4% of OceanFirst Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Banco Do Brasil pays an annual dividend of $0.02 per share and has a dividend yield of 0.5%. OceanFirst Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.1%. Banco Do Brasil pays out 4.9% of its earnings in the form of a dividend. OceanFirst Financial pays out 94.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current ratings for Banco Do Brasil and OceanFirst Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Do Brasil	2	1	0	0	1.33
OceanFirst Financial	0	5	1	0	2.17

OceanFirst Financial has a consensus price target of $21.00, suggesting a potential upside of 8.75%. Given OceanFirst Financial’s stronger consensus rating and higher possible upside, analysts clearly believe OceanFirst Financial is more favorable than Banco Do Brasil.

Volatility and Risk

Banco Do Brasil has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, OceanFirst Financial has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Summary

OceanFirst Financial beats Banco Do Brasil on 12 of the 16 factors compared between the two stocks.

About Banco Do Brasil

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.

About OceanFirst Financial

OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits, that includes brokered deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, trust and asset management services; and bank owned life insurance products. The company was founded in 1902 and is based in Red Bank, New Jersey.