Commonwealth Bank of Australia (OTCMKTS:CMWAY – Get Free Report) and Banco Do Brasil (OTCMKTS:BDORY – Get Free Report) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.
Earnings & Valuation
This table compares Commonwealth Bank of Australia and Banco Do Brasil”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Commonwealth Bank of Australia | $61.51 billion | 3.19 | $6.55 billion | N/A | N/A |
| Banco Do Brasil | $66.83 billion | 0.35 | $2.45 billion | $0.41 | 10.05 |
Profitability
This table compares Commonwealth Bank of Australia and Banco Do Brasil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Commonwealth Bank of Australia | N/A | N/A | N/A |
| Banco Do Brasil | 3.34% | 9.07% | 0.69% |
Institutional and Insider Ownership
0.0% of Commonwealth Bank of Australia shares are held by institutional investors. Comparatively, 0.0% of Banco Do Brasil shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Dividends
Commonwealth Bank of Australia pays an annual dividend of $3.18 per share and has a dividend yield of 2.7%. Banco Do Brasil pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. Banco Do Brasil pays out 7.3% of its earnings in the form of a dividend.
Risk & Volatility
Commonwealth Bank of Australia has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Commonwealth Bank of Australia and Banco Do Brasil, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Commonwealth Bank of Australia | 1 | 1 | 0 | 0 | 1.50 |
| Banco Do Brasil | 1 | 2 | 0 | 0 | 1.67 |
Commonwealth Bank of Australia currently has a consensus target price of $130.18, indicating a potential upside of 11.12%. Given Commonwealth Bank of Australia’s higher possible upside, analysts clearly believe Commonwealth Bank of Australia is more favorable than Banco Do Brasil.
About Commonwealth Bank of Australia
Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides institutional banking services; funds management, superannuation, and share broking products and services; home, car, health, life, income protection, and travel insurance products, as well as retail, premium, business, offshore services. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.
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.
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