Financial Comparison: Banco Do Brasil (OTCMKTS:BDORY) versus Commonwealth Bank of Australia (OTCMKTS:CMWAY)

Banco Do Brasil (OTCMKTS:BDORY) and Commonwealth Bank of Australia (OTCMKTS:CMWAY) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Banco Do Brasil and Commonwealth Bank of Australia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Do Brasil	3.34%	9.07%	0.69%
Commonwealth Bank of Australia	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Banco Do Brasil and Commonwealth Bank of Australia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Do Brasil	1	2	0	0	1.67
Commonwealth Bank of Australia	1	1	0	0	1.50

Commonwealth Bank of Australia has a consensus target price of $130.18, indicating a potential upside of 10.47%. Given Commonwealth Bank of Australia’s higher probable upside, analysts plainly believe Commonwealth Bank of Australia is more favorable than Banco Do Brasil.

Institutional & Insider Ownership

0.0% of Banco Do Brasil shares are held by institutional investors. Comparatively, 0.0% of Commonwealth Bank of Australia shares are held by institutional investors. 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.

Risk and Volatility

Banco Do Brasil has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Commonwealth Bank of Australia has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares Banco Do Brasil and Commonwealth Bank of Australia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Do Brasil	$66.83 billion	0.35	$2.45 billion	$0.41	9.95
Commonwealth Bank of Australia	$61.51 billion	3.21	$6.55 billion	N/A	N/A

Commonwealth Bank of Australia has lower revenue, but higher earnings than Banco Do Brasil.

Dividends

Banco Do Brasil pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. Commonwealth Bank of Australia pays an annual dividend of $3.18 per share and has a dividend yield of 2.7%. Banco Do Brasil pays out 7.3% of its earnings in the form of a dividend.

About Banco Do Brasil

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.

About Commonwealth Bank of Australia

Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides institutional banking services; funds management, superannuation, and share broking products and services; home, car, health, life, income protection, and travel insurance products, as well as retail, premium, business, offshore services. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.