Financial Review: Banco Bradesco (NYSE:BBDO) & Bank First National (NASDAQ:BFC)

Bank First National (NASDAQ:BFC) 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 analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Dividends

Bank First National pays an annual dividend of $2.20 per share and has a dividend yield of 1.4%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. Bank First National pays out 28.6% of its earnings in the form of a dividend. Banco Bradesco pays out 7.1% 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. Bank First National has raised its dividend for 10 consecutive years. Bank First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank First National	27.70%	12.48%	1.73%
Banco Bradesco	10.20%	14.61%	1.11%

Analyst Recommendations

This is a summary of recent ratings and price targets for Bank First National and Banco Bradesco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank First National	0	1	3	1	3.00
Banco Bradesco	0	1	0	0	2.00

Bank First National currently has a consensus price target of $163.00, indicating a potential upside of 4.33%. Given Bank First National’s stronger consensus rating and higher possible upside, research analysts clearly believe Bank First National is more favorable than Banco Bradesco.

Institutional & Insider Ownership

29.9% of Bank First National shares are held by institutional investors. 5.0% of Bank First National shares are held by company insiders. Comparatively, 0.3% of Banco Bradesco shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Bank First National has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bank First National and Banco Bradesco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank First National	$243.93 million	7.10	$71.50 million	$7.69	20.32
Banco Bradesco	$41.79 billion	0.80	$4.24 billion	$0.42	7.55

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

Summary

Bank First National beats Banco Bradesco on 13 of the 18 factors compared between the two stocks.

About Bank First National

Bank First Corporation operates as a holding company for Bank First, N.A. that provides consumer and commercial financial services to businesses, professionals, consumers, associations, individuals, and governmental authorities in Wisconsin. It offers checking, savings, money market, cash management, retirement, and health savings accounts; other time deposits; certificates of deposit; and residential mortgage products. The company's loan products include real estate loans, including commercial real estate, residential mortgage, and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing, and other business purposes; construction and development loans; residential 1-4 family loans; and consumer loans for personal and household purposes, including secured and unsecured installment loans, and revolving lines of credit. It also provides credit cards; ATM processing; insurance; data processing and other information technology; investment and safekeeping; treasury management; and online, telephone, and mobile banking services. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.

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.