Contrasting Banco Bilbao Viscaya Argentaria (NYSE:BBVA) and Banco Bradesco (NYSE:BBDO)
by Tristan Rich · The Markets DailyBanco Bradesco (NYSE:BBDO – Get Free Report) and Banco Bilbao Viscaya Argentaria (NYSE:BBVA – Get Free Report) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Dividends
Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Banco Bilbao Viscaya Argentaria pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Banco Bradesco pays out 5.7% of its earnings in the form of a dividend. Banco Bilbao Viscaya Argentaria pays out 31.4% 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 Banco Bradesco and Banco Bilbao Viscaya Argentaria’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banco Bradesco | 9.27% | 12.95% | 1.06% |
| Banco Bilbao Viscaya Argentaria | 28.58% | 17.07% | 1.32% |
Valuation and Earnings
This table compares Banco Bradesco and Banco Bilbao Viscaya Argentaria”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco Bradesco | $117.80 billion | 0.26 | $3.20 billion | $0.35 | 8.33 |
| Banco Bilbao Viscaya Argentaria | $38.40 billion | 3.51 | $10.88 billion | $1.91 | 12.08 |
Banco Bilbao Viscaya Argentaria has lower revenue, but higher earnings than Banco Bradesco. Banco Bradesco is trading at a lower price-to-earnings ratio than Banco Bilbao Viscaya Argentaria, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Banco Bradesco and Banco Bilbao Viscaya Argentaria, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Bradesco | 0 | 0 | 1 | 0 | 3.00 |
| Banco Bilbao Viscaya Argentaria | 0 | 3 | 2 | 1 | 2.67 |
Volatility & Risk
Banco Bradesco has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Banco Bilbao Viscaya Argentaria has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
Institutional and Insider Ownership
3.0% of Banco Bilbao Viscaya Argentaria shares are held by institutional investors. 0.3% of Banco Bradesco shares are held by insiders. Comparatively, 0.0% of Banco Bilbao Viscaya Argentaria shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Banco Bilbao Viscaya Argentaria beats Banco Bradesco on 12 of the 16 factors compared between the two stocks.
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.
About Banco Bilbao Viscaya Argentaria
Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.