Head-To-Head Survey: Banco Do Brasil (OTCMKTS:BDORY) & Banco Bilbao Viscaya Argentaria (NYSE:BBVA)

Banco Bilbao Viscaya Argentaria (NYSE:BBVA) and Banco Do Brasil (OTCMKTS:BDORY) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Institutional & Insider Ownership

3.0% of Banco Bilbao Viscaya Argentaria shares are owned by institutional investors. Comparatively, 0.0% of Banco Do Brasil shares are owned by institutional investors. 0.0% of Banco Bilbao Viscaya Argentaria shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Banco Bilbao Viscaya Argentaria pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Banco Do Brasil pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. Banco Bilbao Viscaya Argentaria pays out 31.4% of its earnings in the form of a dividend. Banco Do Brasil pays out 5.1% 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.

Analyst Recommendations

This is a summary of recent ratings for Banco Bilbao Viscaya Argentaria and Banco Do Brasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bilbao Viscaya Argentaria	0	3	2	2	2.86
Banco Do Brasil	1	2	0	0	1.67

Earnings & Valuation

This table compares Banco Bilbao Viscaya Argentaria and Banco Do Brasil”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bilbao Viscaya Argentaria	$38.40 billion	3.79	$10.88 billion	$1.91	13.23
Banco Do Brasil	$55.92 billion	0.50	$6.57 billion	$0.39	12.53

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

Profitability

This table compares Banco Bilbao Viscaya Argentaria and Banco Do Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bilbao Viscaya Argentaria	28.58%	17.07%	1.32%
Banco Do Brasil	3.75%	12.73%	0.97%

Volatility and Risk

Banco Bilbao Viscaya Argentaria has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Summary

Banco Bilbao Viscaya Argentaria beats Banco Do Brasil on 14 of the 16 factors compared between the two stocks.

About Banco Bilbao Viscaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

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.