Comparing Banco Bradesco (NYSE:BBDO) & Barclays (NYSE:BCS)

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

Risk and Volatility

Banco Bradesco has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Barclays has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Banco Bradesco and Barclays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	9.85%	13.78%	1.11%
Barclays	21.91%	8.33%	0.40%

Institutional & Insider Ownership

3.4% of Barclays shares are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by insiders. Comparatively, 0.0% of Barclays shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Banco Bradesco and Barclays, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	0	1	0	3.00
Barclays	0	1	4	1	3.00

Dividends

Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Barclays pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Banco Bradesco pays out 5.1% of its earnings in the form of a dividend. Barclays pays out 26.2% 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.

Earnings and Valuation

This table compares Banco Bradesco and Barclays”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	N/A	$4.24 billion	$0.39	8.85
Barclays	$38.42 billion	2.07	$9.46 billion	$2.29	10.07

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

Summary

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

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.

About Barclays

Barclays PLC provides various financial services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International division segments. It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. In addition, the company engages in securities dealing activities. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.