Financial Comparison: Banco Bradesco (NYSE:BBDO) vs. Banner (NASDAQ:BANR)

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

Institutional and Insider Ownership

87.3% of Banner shares are owned by institutional investors. 1.6% of Banner 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 summary of recent recommendations for Banner and Banco Bradesco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banner	0	3	3	0	2.50
Banco Bradesco	0	0	0	0	N/A

Banner currently has a consensus target price of $61.60, suggesting a potential downside of 6.25%. Given Banner’s higher possible upside, equities research analysts plainly believe Banner is more favorable than Banco Bradesco.

Valuation and Earnings

This table compares Banner 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
Banner	$594.20 million	3.82	$183.62 million	$4.81	13.70
Banco Bradesco	$101.08 billion	0.24	$2.85 billion	$0.23	9.96

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

Risk & Volatility

Banner has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banner	20.93%	10.89%	1.14%
Banco Bradesco	6.68%	9.88%	0.85%

Dividends

Banner pays an annual dividend of $1.92 per share and has a dividend yield of 2.9%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Banner pays out 39.9% of its earnings in the form of a dividend. Banco Bradesco pays out 8.7% 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.

Summary

Banner beats Banco Bradesco on 11 of the 15 factors compared between the two stocks.

About Banner

Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.

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.