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

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

Risk & Volatility

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

Dividends

Barclays pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Barclays pays out 26.2% of its earnings in the form of a dividend. Banco Bradesco pays out 5.1% 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.

Profitability

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

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

Institutional and Insider Ownership

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barclays	0	2	3	1	2.83
Banco Bradesco	0	0	1	0	3.00

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barclays	$38.42 billion	1.98	$9.46 billion	$2.29	9.59
Banco Bradesco	$41.79 billion	N/A	$4.24 billion	$0.39	8.51

Barclays has higher earnings, but lower revenue 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 15 factors compared between the two stocks.

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.

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.