Banco Bradesco (NYSE: BBD) and Huntington Bancshares (NASDAQ:HBAN) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Risk and Volatility

Banco Bradesco has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Dividends

Banco Bradesco pays an annual dividend of $0.25 per share and has a dividend yield of 2.3%. Huntington Bancshares pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Banco Bradesco pays out 33.3% of its earnings in the form of a dividend. Huntington Bancshares pays out 38.6% 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. Banco Bradesco has raised its dividend for 4 consecutive years. Banco Bradesco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

2.7% of Banco Bradesco shares are held by institutional investors. Comparatively, 73.7% of Huntington Bancshares shares are held by institutional investors. 1.3% of Huntington Bancshares shares are held 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.

Profitability

This table compares Banco Bradesco and Huntington Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Bradesco 9.17% 17.71% 1.57%
Huntington Bancshares 20.76% 11.96% 1.12%

Analyst Ratings

This is a breakdown of current recommendations for Banco Bradesco and Huntington Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Bradesco 0 1 2 0 2.67
Huntington Bancshares 0 6 11 0 2.65

Banco Bradesco currently has a consensus price target of $12.40, suggesting a potential upside of 12.73%. Huntington Bancshares has a consensus price target of $16.27, suggesting a potential upside of 3.73%. Given Banco Bradesco’s stronger consensus rating and higher possible upside, research analysts clearly believe Banco Bradesco is more favorable than Huntington Bancshares.

Valuation and Earnings

This table compares Banco Bradesco and Huntington Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Bradesco $46.77 billion 1.57 $4.32 billion $0.75 14.67
Huntington Bancshares $3.78 billion 4.48 $711.82 million $0.83 18.89

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

Summary

Banco Bradesco beats Huntington Bancshares on 10 of the 17 factors compared between the two stocks.

Banco Bradesco Company Profile

Banco Bradesco S.A. is a commercial bank. The Bank offers a range of banking and financial products and services in Brazil and abroad to individuals, large, mid-sized and small companies, and local and international corporations and institutions. Its segments include Financial; Insurance and Capitalization bonds; Pension plans, and Other Activities. The Financial segment consists of financial institutions and holding companies, which are responsible for managing financial resources, and credit card, consortium and asset management companies. The Insurance Group segment comprises insurance, pension plan and capitalization bond companies. It offers banking services, including deposit-taking activities, individual and corporate banking services, credit and debit cards, leasing operations, investment banking, asset management, consortium services and others. Its insurance services include health insurance, life and personal accident insurance, automobile, casualty and pension plans.

Huntington Bancshares Company Profile

Huntington Bancshares Incorporated (Huntington) is a bank holding company. Through its subsidiaries, including its bank subsidiary, The Huntington National Bank (the Bank), the Company provides commercial and consumer banking services, mortgage banking services, automobile financing, recreational vehicle and marine financing, equipment leasing, investment management, trust services, brokerage services, insurance programs, and other financial products and services. Its segments include Consumer and Business Banking, Commercial Banking, Commercial Real Estate and Vehicle Finance, Regional Banking and The Huntington Private Client Group, Home Lending and Treasury/Other. The Bank offers commercial and consumer loans. Its consumer loans include automobile, home equity, residential mortgage, and recreational vehicle (RV) and marine finance loans. It offers demand deposits-noninterest-bearing, demand deposits-interest-bearing, money market deposits, and savings and other domestic deposits.

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