Banco Bradesco (NYSE:BBD) and PCB Bancorp (NASDAQ:PCB) Critical Survey

PCB Bancorp (NASDAQ:PCB) and Banco Bradesco (NYSE:BBD) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares PCB Bancorp and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PCB Bancorp	19.65%	12.91%	1.24%
Banco Bradesco	10.55%	14.61%	1.11%

Analyst Ratings

This is a breakdown of current recommendations for PCB Bancorp and Banco Bradesco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCB Bancorp	0	3	0	1	2.50
Banco Bradesco	0	1	1	0	2.50

PCB Bancorp presently has a consensus target price of $27.75, indicating a potential downside of 1.39%. Given PCB Bancorp’s higher probable upside, research analysts clearly believe PCB Bancorp is more favorable than Banco Bradesco.

Dividends

PCB Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.1%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. PCB Bancorp pays out 30.4% 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. PCB Bancorp has raised its dividend for 7 consecutive years. PCB Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

PCB Bancorp has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Insider & Institutional Ownership

33.0% of PCB Bancorp shares are held by institutional investors. 27.0% of PCB Bancorp 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, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares PCB Bancorp and Banco Bradesco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCB Bancorp	$209.37 million	1.89	$37.45 million	$2.89	9.74
Banco Bradesco	$41.79 billion	0.88	$4.24 billion	$0.42	8.26

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

Summary

PCB Bancorp beats Banco Bradesco on 11 of the 17 factors compared between the two stocks.

About PCB Bancorp

PCB Bancorp operates as the bank holding company for PCB Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and trade finance, remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and consumer loans comprising residential mortgage; and automobile loans, unsecured lines of credit, and term loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of full-service branches in Los Angeles and Orange counties, California; Carrollton and Dallas, Texas; and Englewood Cliffs and Palisade Park, New Jersey, and Bayside, New York. It also operates loan production offices in Los Angeles and Orange Counties, California; Annandale, Virginia; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; and Carrollton, Texas. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, 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.