Financial Review: Barclays (NYSE:BCS) vs. Banco Do Brasil (OTCMKTS:BDORY)

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

Volatility & Risk

Barclays has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Banco Do Brasil has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Barclays and Banco Do Brasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barclays	0	4	5	0	2.56
Banco Do Brasil	2	1	0	0	1.33

Valuation and Earnings

This table compares Barclays 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
Barclays	$38.42 billion	2.48	$9.46 billion	$2.40	11.64
Banco Do Brasil	$66.83 billion	0.35	$2.45 billion	$0.41	9.88

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

Institutional and Insider Ownership

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

Dividends

Barclays pays an annual dividend of $0.58 per share and has a dividend yield of 2.1%. Banco Do Brasil pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. Barclays pays out 24.2% of its earnings in the form of a dividend. Banco Do Brasil pays out 7.3% 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 Do Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barclays	21.10%	8.12%	0.39%
Banco Do Brasil	3.34%	8.86%	0.67%

Summary

Barclays beats Banco Do Brasil on 11 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 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.