Contrasting BBVA Banco Frances (NYSE:BBAR) & Banco Bradesco (NYSE:BBDO)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for BBVA Banco Frances and Banco Bradesco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBVA Banco Frances	0	3	2	2	2.86
Banco Bradesco	0	0	1	0	3.00

BBVA Banco Frances currently has a consensus target price of $17.67, suggesting a potential upside of 23.66%. Given BBVA Banco Frances’ higher possible upside, equities analysts clearly believe BBVA Banco Frances is more favorable than Banco Bradesco.

Volatility & Risk

BBVA Banco Frances has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Dividends

BBVA Banco Frances pays an annual dividend of $0.42 per share and has a dividend yield of 2.9%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. BBVA Banco Frances pays out 50.6% of its earnings in the form of a dividend. Banco Bradesco pays out 5.1% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BBVA Banco Frances	3.70%	6.55%	0.97%
Banco Bradesco	9.85%	13.78%	1.11%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBVA Banco Frances	$4.96 billion	0.59	$199.99 million	$0.83	17.21
Banco Bradesco	$41.79 billion	N/A	$4.24 billion	$0.39	8.06

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

About BBVA Banco Frances

Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina. The company provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards financing, consumer and pledge loans, mortgages, insurance, and investment products to individuals; and small and medium-sized companies products and services, including financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance, and investment products to private-sector companies. It also provides corporate and investment banking products and services, such as global transaction services; global markets solutions comprising risk management and securities brokerage; long-term financing products, including project finance and syndicated loans; and corporate finance services comprising mergers and acquisitions, and capital markets advisory services to corporations and multinational companies. The company was formerly known as BBVA Banco Francés S.A. and changed its name to Banco BBVA Argentina S.A. in July 2019. Banco BBVA Argentina S.A. was incorporated in 1886 and is based in Buenos Aires, Argentina.

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.