Banco Bradesco (NYSE:BBDO) and Danske Bank (OTCMKTS:DNKEY) Head-To-Head Review

Banco Bradesco (NYSE:BBDO) and Danske Bank (OTCMKTS:DNKEY) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Banco Bradesco and Danske Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	0	1	0	3.00
Danske Bank	0	1	4	0	2.80

Risk and Volatility

Banco Bradesco has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Danske Bank has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Dividends

Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Danske Bank pays an annual dividend of $0.76 per share and has a dividend yield of 2.9%. Banco Bradesco pays out 5.7% of its earnings in the form of a dividend. Danske Bank pays out 37.6% 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.

Earnings and Valuation

This table compares Banco Bradesco and Danske Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$37.55 billion	N/A	$3.20 billion	$0.35	10.36
Danske Bank	$8.18 billion	5.33	$3.43 billion	$2.02	12.92

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	9.27%	12.95%	1.06%
Danske Bank	40.42%	13.01%	0.61%

Summary

Danske Bank beats Banco Bradesco on 8 of the 12 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 Danske Bank

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.