Head-To-Head Review: Banco Do Brasil (OTCMKTS:BDORY) vs. Sierra Bancorp (NASDAQ:BSRR)

Banco Do Brasil (OTCMKTS:BDORY) and Sierra Bancorp (NASDAQ:BSRR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Institutional and Insider Ownership

0.0% of Banco Do Brasil shares are held by institutional investors. Comparatively, 55.4% of Sierra Bancorp shares are held by institutional investors. 11.8% of Sierra Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Banco Do Brasil and Sierra Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Do Brasil	2	1	0	0	1.33
Sierra Bancorp	0	3	2	0	2.40

Sierra Bancorp has a consensus price target of $38.67, suggesting a potential downside of 3.79%. Given Sierra Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Sierra Bancorp is more favorable than Banco Do Brasil.

Profitability

This table compares Banco Do Brasil and Sierra Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Do Brasil	3.14%	9.01%	0.68%
Sierra Bancorp	22.37%	12.38%	1.20%

Dividends

Banco Do Brasil pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. Sierra Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 2.7%. Banco Do Brasil pays out 5.0% of its earnings in the form of a dividend. Sierra Bancorp pays out 31.6% 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. Sierra Bancorp has raised its dividend for 2 consecutive years. Sierra Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Banco Do Brasil and Sierra Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Do Brasil	$66.83 billion	0.39	$2.45 billion	$0.40	11.47
Sierra Bancorp	$201.98 million	2.58	$42.33 million	$3.42	11.75

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

Risk and Volatility

Banco Do Brasil has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Sierra Bancorp has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Summary

Sierra Bancorp beats Banco Do Brasil on 14 of the 17 factors compared between the two stocks.

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.

About Sierra Bancorp

Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California. It accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. The company's loan products include agricultural, commercial, consumer, real estate, construction, and mortgage loans. It also offers automated teller machines; electronic point-of-sale payment alternatives; online and automated telephone banking services; and remote deposit capture and automated payroll services for business customers. Sierra Bancorp was founded in 1977 and is headquartered in Porterville, California.