Head to Head Analysis: Grupo Cibest (NYSE:CIB) and Banco Do Brasil (OTCMKTS:BDORY)

Grupo Cibest (NYSE:CIB) and Banco Do Brasil (OTCMKTS:BDORY) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Risk & Volatility

Grupo Cibest has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Profitability

This table compares Grupo Cibest and Banco Do Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Cibest	10.80%	20.87%	2.22%
Banco Do Brasil	3.14%	8.88%	0.67%

Dividends

Grupo Cibest pays an annual dividend of $5.45 per share and has a dividend yield of 5.9%. Banco Do Brasil pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Grupo Cibest pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Banco Do Brasil pays out 5.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Grupo Cibest and Banco Do Brasil”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Cibest	$29,676.55 billion	0.00	$764.13 million	$5.13	17.91
Banco Do Brasil	$66.83 billion	0.26	$2.45 billion	$0.40	7.65

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

Analyst Ratings

This is a breakdown of current recommendations for Grupo Cibest and Banco Do Brasil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Cibest	1	5	3	0	2.22
Banco Do Brasil	3	0	0	0	1.00

Grupo Cibest presently has a consensus target price of $90.83, indicating a potential downside of 1.16%. Given Grupo Cibest’s stronger consensus rating and higher possible upside, equities analysts clearly believe Grupo Cibest is more favorable than Banco Do Brasil.

Institutional and Insider Ownership

0.0% of Banco Do Brasil shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Grupo Cibest beats Banco Do Brasil on 11 of the 15 factors compared between the two stocks.

About Grupo Cibest

Bancolombia S.A., together with its subsidiaries, provides banking products and services in Colombia and internationally. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, money market accounts, time deposits, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; factoring; and financial and operating leasing services. The company provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services comprising selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency and trade finance solutions; letters of credit and bills collection; insurance and bancassurance products; telephone and mobile phone banking services; and online and computer banking services. Further, the company provides project and acquisition finance, loan syndication, corporate loans, debt and equity capital markets, principal investments, mergers and acquisition, hedging strategy advisories, restructurings, and structured financing; mutual and pension funds, private equity funds, payment and corporate trust, and custody; internet-based trading platform; inter-bank lending and repurchase agreements; managing escrow accounts, and investment and real estate funds; credit cards; roadside and medical assistance services; and transportation, maintenance and remodeling, and outsourcing services, as well as provides technology services. Bancolombia S.A. was founded in 1875 and is headquartered in Medellín, Colombia.

About Banco Do Brasil

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.