Head-To-Head Survey: Banco Bradesco (NYSE:BBDO) and United Security Bancshares (NASDAQ:UBFO)

United Security Bancshares (NASDAQ:UBFO) and Banco Bradesco (NYSE:BBDO) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares United Security Bancshares and Banco Bradesco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Security Bancshares	$53.51 million	3.39	$12.29 million	$0.71	14.80
Banco Bradesco	$41.79 billion	0.80	$4.24 billion	$0.42	7.49

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

Risk & Volatility

United Security Bancshares has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares United Security Bancshares and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Security Bancshares	18.65%	9.03%	1.01%
Banco Bradesco	10.20%	14.61%	1.11%

Analyst Ratings

This is a summary of recent ratings and target prices for United Security Bancshares and Banco Bradesco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Security Bancshares	0	0	1	0	3.00
Banco Bradesco	0	1	0	0	2.00

Dividends

United Security Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 4.6%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. United Security Bancshares pays out 67.6% of its earnings in the form of a dividend. Banco Bradesco pays out 7.1% 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. United Security Bancshares has increased its dividend for 2 consecutive years. United Security Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

30.9% of United Security Bancshares shares are held by institutional investors. 22.1% of United Security Bancshares 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 stock is poised for long-term growth.

Summary

United Security Bancshares beats Banco Bradesco on 10 of the 16 factors compared between the two stocks.

About United Security Bancshares

United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction and development, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, and foreign draft services, as well as interactive teller machines; and person-to-person and bank-to-bank transfers for consumer customers. United Security Bancshares was founded in 1987 and is headquartered in Fresno, California.

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.