Analyzing Banco Bradesco (NYSE:BBDO) & Danske Bank (OTCMKTS:DNKEY)

Danske Bank (OTCMKTS:DNKEY) and Banco Bradesco (NYSE:BBDO) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Valuation and Earnings

This table compares Danske Bank and Banco Bradesco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank	$8.18 billion	5.23	$3.43 billion	$2.02	12.68
Banco Bradesco	$37.55 billion	N/A	$3.20 billion	$0.35	10.45

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

Dividends

Danske Bank pays an annual dividend of $0.76 per share and has a dividend yield of 3.0%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.5%. Danske Bank pays out 37.6% of its earnings in the form of a dividend. Banco Bradesco pays out 5.7% 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.

Risk and Volatility

Danske Bank has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Danske Bank and Banco Bradesco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank	0	1	4	0	2.80
Banco Bradesco	0	0	1	0	3.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Danske Bank	40.42%	13.01%	0.61%
Banco Bradesco	9.27%	12.95%	1.06%

Summary

Danske Bank beats Banco Bradesco on 8 of the 12 factors compared between the two stocks.

About Danske Bank

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.

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.