BB Seguridade Participacoes (BBSEY) and The Competition Critical Contrast

BB Seguridade Participacoes (OTCMKTS:BBSEY) is one of 155 public companies in the “FIN – MISC SVCS” industry, but how does it contrast to its peers? We will compare BB Seguridade Participacoes to similar businesses based on the strength of its earnings, dividends, analyst recommendations, valuation, risk, institutional ownership and profitability.

Dividends

BB Seguridade Participacoes pays an annual dividend of $0.72 per share and has a dividend yield of 10.5%. BB Seguridade Participacoes pays out 91.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “FIN – MISC SVCS” companies pay a dividend yield of 2.1% and pay out 46.2% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares BB Seguridade Participacoes and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BB Seguridade Participacoes	$1.89 billion	$1.61 billion	8.71
BB Seguridade Participacoes Competitors	$2.90 billion	$308.70 million	-140.26

BB Seguridade Participacoes’ peers have higher revenue, but lower earnings than BB Seguridade Participacoes. BB Seguridade Participacoes is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

BB Seguridade Participacoes has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, BB Seguridade Participacoes’ peers have a beta of 5.04, meaning that their average stock price is 404% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for BB Seguridade Participacoes and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BB Seguridade Participacoes	0	1	0	1	3.00
BB Seguridade Participacoes Competitors	650	2733	4282	156	2.50

As a group, “FIN – MISC SVCS” companies have a potential upside of 5.14%. Given BB Seguridade Participacoes’ peers higher probable upside, analysts plainly believe BB Seguridade Participacoes has less favorable growth aspects than its peers.

Profitability

This table compares BB Seguridade Participacoes and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BB Seguridade Participacoes	85.45%	77.90%	43.24%
BB Seguridade Participacoes Competitors	-14.02%	2.14%	-1.36%

Institutional & Insider Ownership

0.0% of BB Seguridade Participacoes shares are owned by institutional investors. Comparatively, 42.7% of shares of all “FIN – MISC SVCS” companies are owned by institutional investors. 20.0% of shares of all “FIN – MISC SVCS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

BB Seguridade Participacoes beats its peers on 8 of the 15 factors compared.

BB Seguridade Participacoes Company Profile

BB Seguridade Participações S.A., through its subsidiaries operates in the insurance, pension plans, and bonds, businesses in Brazil. The company operates through Security and Brokerage segments. The Security segment offers life, property, rural, special risks and financial, transport, hulls, and housing people insurance products. It also offers pension plans, dental, and capitalization plans. The Brokerage segment engages in the brokerage, management, and promotion of pension plans, capitalization, capitalization, and dental plans. BB Seguridade Participações S.A. was incorporated in 2012 and is headquartered in Brasilia, Brazil. BB Seguridade Participações S.A. operates as a subsidiary of Banco do Brasil S.A.