Banco Do Brasil (OTCMKTS:BDORY – Get Free Report) and Ponce Financial Group (NASDAQ:PDLB – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.
Volatility & Risk
Banco Do Brasil has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Ponce Financial Group has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Profitability
This table compares Banco Do Brasil and Ponce Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banco Do Brasil | 3.14% | 8.88% | 0.67% |
| Ponce Financial Group | 16.51% | 10.52% | 1.02% |
Insider and Institutional Ownership
0.0% of Banco Do Brasil shares are held by institutional investors. Comparatively, 64.3% of Ponce Financial Group shares are held by institutional investors. 7.2% of Ponce Financial Group 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.
Valuation and Earnings
This table compares Banco Do Brasil and Ponce Financial Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco Do Brasil | $66.83 billion | 0.41 | $2.45 billion | $0.40 | 11.97 |
| Ponce Financial Group | $194.94 million | 2.49 | $28.70 million | $1.40 | 14.32 |
Banco Do Brasil has higher revenue and earnings than Ponce Financial Group. Banco Do Brasil is trading at a lower price-to-earnings ratio than Ponce Financial Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for Banco Do Brasil and Ponce Financial Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Do Brasil | 2 | 1 | 0 | 0 | 1.33 |
| Ponce Financial Group | 0 | 1 | 0 | 2 | 3.33 |
Ponce Financial Group has a consensus price target of $24.00, indicating a potential upside of 19.73%. Given Ponce Financial Group’s stronger consensus rating and higher probable upside, analysts clearly believe Ponce Financial Group is more favorable than Banco Do Brasil.
Summary
Ponce Financial Group beats Banco Do Brasil on 12 of the 14 factors compared between the two stocks.
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.
About Ponce Financial Group
Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.
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