Financial Contrast: Colony Bankcorp (NYSE:CBAN) versus Banco Bradesco (NYSE:BBDO)

Banco Bradesco (NYSE:BBDO) and Colony Bankcorp (NYSE:CBAN) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. Colony Bankcorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.4%. Banco Bradesco pays out 7.1% of its earnings in the form of a dividend. Colony Bankcorp pays out 29.1% 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. Colony Bankcorp has raised its dividend for 7 consecutive years. Colony Bankcorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	10.20%	14.61%	1.11%
Colony Bankcorp	15.42%	10.40%	1.06%

Risk & Volatility

Banco Bradesco has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Banco Bradesco and Colony Bankcorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	1	0	0	2.00
Colony Bankcorp	0	1	3	0	2.75

Colony Bankcorp has a consensus target price of $23.00, indicating a potential upside of 13.52%. Given Colony Bankcorp’s stronger consensus rating and higher probable upside, analysts plainly believe Colony Bankcorp is more favorable than Banco Bradesco.

Insider & Institutional Ownership

50.4% of Colony Bankcorp shares are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by company insiders. Comparatively, 3.9% of Colony Bankcorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Banco Bradesco and Colony Bankcorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	0.80	$4.24 billion	$0.42	7.47
Colony Bankcorp	$190.23 million	2.26	$28.25 million	$1.65	12.28

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

Summary

Colony Bankcorp beats Banco Bradesco on 12 of the 17 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 Colony Bankcorp

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers various deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. As of January 20, 2022, it operated 39 locations throughout Georgia. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.