Financial Survey: Macro Bank (NYSE:BMA) vs. Banco Bradesco (NYSE:BBD)

Banco Bradesco (NYSE:BBD) and Macro Bank (NYSE:BMA) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Volatility & Risk

Banco Bradesco has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Macro Bank has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.2%. Macro Bank pays an annual dividend of $3.67 per share and has a dividend yield of 6.6%. Banco Bradesco pays out 6.5% of its earnings in the form of a dividend. Macro Bank pays out 80.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Banco Bradesco and Macro Bank’s 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%
Macro Bank	5.95%	8.65%	2.04%

Analyst Ratings

This is a summary of recent recommendations for Banco Bradesco and Macro Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	6	1	0	2.14
Macro Bank	1	2	4	0	2.43

Banco Bradesco currently has a consensus target price of $4.05, suggesting a potential upside of 61.03%. Macro Bank has a consensus target price of $101.25, suggesting a potential upside of 83.16%. Given Macro Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Macro Bank is more favorable than Banco Bradesco.

Earnings & Valuation

This table compares Banco Bradesco and Macro Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	0.64	$4.24 billion	$0.46	5.47
Macro Bank	$4.72 billion	0.75	$231.60 million	$4.57	12.10

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

Summary

Macro Bank beats Banco Bradesco on 9 of the 14 factors compared between the two stocks.

About Banco Bradesco

Banco Bradesco S.A. is a Brazilian financial services company offering banking, insurance and related services to individuals, businesses and institutions. Its banking products include checking and savings accounts, loans, credit cards, investment services and solutions for corporate clients. The company also operates in insurance, private pensions and capitalization products, and provides services such as asset management and consortium financing. Bradesco serves customers primarily across Brazil through digital channels and a nationwide branch and service network.

About Macro Bank

Macro Bank, formally Banco Macro S.A., is an Argentine financial services company that provides banking products to individuals, businesses and other organizations. Its services include deposit accounts, personal and commercial loans, credit and debit cards, and digital banking, as well as cash-management and other banking services for businesses. The company serves customers across Argentina through its banking network and online channels. Its history dates to 1976, when it began as a financial institution before expanding into commercial banking.