Comparing Banner (NASDAQ:BANR) and Banco Bradesco (NYSE:BBDO)

Banco Bradesco (NYSE:BBDO) and Banner (NASDAQ:BANR) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Risk and Volatility

Banco Bradesco has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Banner has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	6.68%	9.88%	0.85%
Banner	20.93%	10.89%	1.14%

Institutional & Insider Ownership

87.3% of Banner shares are held by institutional investors. 0.3% of Banco Bradesco shares are held by insiders. Comparatively, 1.6% of Banner shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Banco Bradesco and Banner”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$101.08 billion	0.24	$2.85 billion	$0.23	9.96
Banner	$594.20 million	3.82	$183.62 million	$4.81	13.70

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Banco Bradesco and Banner, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	0	0	0	N/A
Banner	0	3	3	0	2.50

Banner has a consensus target price of $61.60, indicating a potential downside of 6.25%. Given Banner’s higher possible upside, analysts plainly believe Banner is more favorable than Banco Bradesco.

Dividends

Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Banner pays an annual dividend of $1.92 per share and has a dividend yield of 2.9%. Banco Bradesco pays out 8.7% of its earnings in the form of a dividend. Banner pays out 39.9% 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.

Summary

Banner beats Banco Bradesco on 11 of the 15 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 Banner

Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.