Banco Latinoamericano de Comercio Exterior (NYSE:BLX – Get Free Report) and Banco Bradesco (NYSE:BBD – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Dividends
Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 4.4%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. Banco Latinoamericano de Comercio Exterior pays out 45.7% of its earnings in the form of a dividend. Banco Bradesco pays out 7.7% 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. Banco Latinoamericano de Comercio Exterior has increased its dividend for 2 consecutive years. Banco Latinoamericano de Comercio Exterior is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Banco Latinoamericano de Comercio Exterior and Banco Bradesco”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco Latinoamericano de Comercio Exterior | $836.85 million | 2.76 | $226.88 million | $6.02 | 10.32 |
| Banco Bradesco | $41.79 billion | 0.88 | $4.24 billion | $0.39 | 8.86 |
Banco Bradesco has higher revenue and earnings than Banco Latinoamericano de Comercio Exterior. Banco Bradesco is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comercio Exterior, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. 0.2% of Banco Latinoamericano de Comercio Exterior shares are held by insiders. Comparatively, 0.3% of Banco Bradesco shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Banco Latinoamericano de Comercio Exterior and Banco Bradesco, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Latinoamericano de Comercio Exterior | 0 | 0 | 0 | 1 | 4.00 |
| Banco Bradesco | 0 | 0 | 2 | 0 | 3.00 |
Profitability
This table compares Banco Latinoamericano de Comercio Exterior and Banco Bradesco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banco Latinoamericano de Comercio Exterior | 27.77% | 14.36% | 1.79% |
| Banco Bradesco | 9.24% | 14.15% | 1.10% |
Volatility & Risk
Banco Latinoamericano de Comercio Exterior has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.
Summary
Banco Latinoamericano de Comercio Exterior beats Banco Bradesco on 12 of the 17 factors compared between the two stocks.
About Banco Latinoamericano de Comercio Exterior
Banco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates in two segments, Commercial and Treasury. It offers bilateral loans; structured loans including syndicated and clubbed, such as acquisition and pre-export financing, A/B loan financing, bridge loans, and liability management; and project financing. The company also provides letter of credit comprising import and export letters of credit, and credit discounting and financing, as well as usance payable at sight; stand-by services; bank guarantees, including first demand and local guarantees; import and export documentary collection; irrevocable reimbursement undertaking; and canal tolls. In addition, it offers liquidity and investment solutions, such as time deposits, DDA accounts, Yankee certificate of deposits, and EMTN private placement services, as well as supply chain finance services. The company primarily serves financial institutions, corporations, and sovereigns and state-owned entities. Banco Latinoamericano de Comercio Exterior, S. A.was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. The company was founded in 1975 and is headquartered in Panama City, the Republic of Panama.
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.
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