Head to Head Analysis: BB Seguridade Participacoes (BBSEY) & Its Peers

BB Seguridade Participacoes (OTCMKTS:BBSEY) is one of 342 publicly-traded companies in the “Financial Services” industry, but how does it compare to its peers? We will compare BB Seguridade Participacoes to related businesses based on the strength of its earnings, risk, profitability, institutional ownership, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

0.0% of BB Seguridade Participacoes shares are held by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are held by institutional investors. 21.9% of shares of all “Financial Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

BB Seguridade Participacoes has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, BB Seguridade Participacoes’ peers have a beta of 2.50, indicating that their average share price is 150% more volatile than the S&P 500.

Profitability

This table compares BB Seguridade Participacoes and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BB Seguridade Participacoes	87.94%	79.22%	43.59%
BB Seguridade Participacoes Competitors	-409.62%	-15.98%	-6.09%

Earnings and Valuation

This table compares BB Seguridade Participacoes and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BB Seguridade Participacoes	$1.85 billion	$1.61 billion	8.41
BB Seguridade Participacoes Competitors	$6.69 billion	$1.07 billion	8.38

BB Seguridade Participacoes’ peers have higher revenue, but lower earnings than BB Seguridade Participacoes. BB Seguridade Participacoes is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for BB Seguridade Participacoes and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BB Seguridade Participacoes	1	3	0	0	1.75
BB Seguridade Participacoes Competitors	1970	6873	11619	443	2.50

As a group, “Financial Services” companies have a potential downside of 1.58%. Given BB Seguridade Participacoes’ peers stronger consensus rating and higher probable upside, analysts clearly believe BB Seguridade Participacoes has less favorable growth aspects than its peers.

Dividends

BB Seguridade Participacoes pays an annual dividend of $0.66 per share and has a dividend yield of 8.7%. BB Seguridade Participacoes pays out 73.3% of its earnings in the form of a dividend. As a group, “Financial Services” companies pay a dividend yield of 4.2% and pay out -89.5% of their earnings in the form of a dividend.

Summary

BB Seguridade Participacoes peers beat BB Seguridade Participacoes on 9 of the 15 factors compared.

About BB Seguridade Participacoes

BB Seguridade Participações S.A., through its subsidiaries operates in the insurance, pension plans, and bonds, businesses in Brazil. The company operates through Security and Brokerage segments. The Security segment offers life, property, rural, special risks and financial, transport, hulls, and housing people insurance products. It also offers pension plans, dental, and capitalization plans. The Brokerage segment engages in the brokerage, management, and promotion of pension plans, capitalization, capitalization, and dental plans. BB Seguridade Participações S.A. was incorporated in 2012 and is headquartered in Brasilia, Brazil. BB Seguridade Participações S.A. operates as a subsidiary of Banco do Brasil S.A.