Analyzing Banco Bradesco (BBD) and Its Peers

Banco Bradesco (NYSE:BBD) is one of 85 publicly-traded companies in the “BANKS – FOREIGN” industry, but how does it compare to its peers? We will compare Banco Bradesco to similar companies based on the strength of its dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares Banco Bradesco and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	$4.24 billion	10.81
Banco Bradesco Competitors	$39.68 billion	$7.28 billion	12.45

Banco Bradesco has higher revenue, but lower earnings than its peers. Banco Bradesco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Banco Bradesco and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	10.19%	13.78%	1.11%
Banco Bradesco Competitors	18.33%	13.20%	1.06%

Dividends

Banco Bradesco pays an annual dividend of $0.43 per share and has a dividend yield of 10.2%. Banco Bradesco pays out 110.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “BANKS – FOREIGN” companies pay a dividend yield of 3.2% and pay out 40.8% of their earnings in the form of a dividend.

Institutional & Insider Ownership

25.4% of shares of all “BANKS – FOREIGN” companies are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by insiders. Comparatively, 4.9% of shares of all “BANKS – FOREIGN” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Banco Bradesco and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	0	4	0	3.00
Banco Bradesco Competitors	1358	4466	4774	235	2.36

As a group, “BANKS – FOREIGN” companies have a potential upside of 2.56%. Given Banco Bradesco’s peers higher probable upside, analysts clearly believe Banco Bradesco has less favorable growth aspects than its peers.

Risk and Volatility

Banco Bradesco has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Banco Bradesco’s peers have a beta of 0.67, meaning that their average stock price is 33% less volatile than the S&P 500.

Summary

Banco Bradesco peers beat Banco Bradesco on 9 of the 15 factors compared.

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.