Reviewing Banco Bradesco (BBD) & The Competition

Banco Bradesco (NYSE:BBD) is one of 920 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare Banco Bradesco to related companies based on the strength of its profitability, dividends, analyst recommendations, valuation, institutional ownership, risk and earnings.

Valuation and Earnings

This table compares Banco Bradesco and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banco Bradesco	$123.82 billion	$4.24 billion	5.54
Banco Bradesco Competitors	$41.97 billion	$2.41 billion	19.05

Banco Bradesco has higher revenue and 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.

Analyst Ratings

This is a summary of current ratings and price targets for Banco Bradesco and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	6	1	0	2.14
Banco Bradesco Competitors	7450	30146	27697	1450	2.35

Banco Bradesco presently has a consensus target price of $4.05, suggesting a potential upside of 58.82%. As a group, “Banks” companies have a potential upside of 17.31%. Given Banco Bradesco’s higher possible upside, analysts plainly believe Banco Bradesco is more favorable than its peers.

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	12.58%	15.06%	1.14%
Banco Bradesco Competitors	15.48%	9.50%	0.93%

Volatility and Risk

Banco Bradesco has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Banco Bradesco’s peers have a beta of 0.60, indicating that their average share price is 40% less volatile than the S&P 500.

Institutional & Insider Ownership

47.9% of shares of all “Banks” companies are held by institutional investors. 0.3% of Banco Bradesco shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. Banco Bradesco pays out 4.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% of their earnings in the form of a dividend.

Summary

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

Banco Bradesco Company Profile

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.