Head to Head Analysis: Lloyds Banking Group (NYSE:LYG) & Banco Bradesco (NYSE:BBD)

Lloyds Banking Group (NYSE:LYG) and Banco Bradesco (NYSE:BBD) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Institutional and Insider Ownership

2.2% of Lloyds Banking Group shares are owned by institutional investors. 0.0% of Lloyds Banking Group shares are owned by insiders. Comparatively, 0.3% of Banco Bradesco shares are owned by 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lloyds Banking Group and Banco Bradesco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lloyds Banking Group	0	4	7	0	2.64
Banco Bradesco	0	0	3	0	3.00

Dividends

Lloyds Banking Group pays an annual dividend of $0.25 per share and has a dividend yield of 4.7%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. Lloyds Banking Group pays out 56.8% of its earnings in the form of a dividend. Banco Bradesco pays out 7.7% 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.

Volatility & Risk

Lloyds Banking Group has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Earnings & Valuation

This table compares Lloyds Banking Group and Banco Bradesco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lloyds Banking Group	$25.61 billion	3.06	$6.14 billion	$0.44	12.19
Banco Bradesco	$41.79 billion	0.88	$4.24 billion	$0.39	8.91

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lloyds Banking Group	25.11%	10.63%	0.53%
Banco Bradesco	9.24%	14.15%	1.10%

Summary

Lloyds Banking Group beats Banco Bradesco on 9 of the 15 factors compared between the two stocks.

About Lloyds Banking Group

Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial services in the United Kingdom and internationally. It operates in three segments: Retail; Commercial Banking; and Insurance, Pensions and Investments. The Retail segment offers a range of financial service products, including current accounts, savings, mortgages, motor finance, unsecured loans, leasing solutions, and credit cards to personal customers. The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, and debt financing services to small and medium-sized entities, corporates, and institutions. The Insurance, Pensions, and Investments segment offers insurance, investment, and pension management products and services. It also provides digital banking services. The company offers its products and services under the Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, MBNA, Schroders Personal Wealth, Black Horse, Lex Autolease, Birmingham Midshires, LDC, AMC, Embark Group, Citra, IWeb, Cavendish Online, and Tusker brand names. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom.

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.