First National (NASDAQ:FXNC – Get Rating) and Banco Bradesco (NYSE:BBD – Get Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Valuation & Earnings
This table compares First National and Banco Bradesco’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First National||$47.32 million||2.66||$10.36 million||$2.02||9.96|
|Banco Bradesco||$22.16 billion||1.93||$4.07 billion||$0.39||10.16|
Banco Bradesco has higher revenue and earnings than First National. First National is trading at a lower price-to-earnings ratio than Banco Bradesco, indicating that it is currently the more affordable of the two stocks.
First National pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Banco Bradesco pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. First National pays out 27.7% of its earnings in the form of a dividend. Banco Bradesco pays out 10.2% 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. First National has raised its dividend for 7 consecutive years. First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
38.0% of First National shares are owned by institutional investors. Comparatively, 2.3% of Banco Bradesco shares are owned by institutional investors. 15.7% of First National shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares First National and Banco Bradesco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for First National and Banco Bradesco, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
First National currently has a consensus target price of $51.00, indicating a potential upside of 153.48%. Banco Bradesco has a consensus target price of $4.27, indicating a potential upside of 7.09%. Given First National’s higher possible upside, research analysts plainly believe First National is more favorable than Banco Bradesco.
Volatility & Risk
First National has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
Banco Bradesco beats First National on 9 of the 17 factors compared between the two stocks.
About First National (Get Rating)
First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company’s deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. The company’s loan products also include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. In addition, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Further, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. It serves customers through 20 bank branch offices, a loan production office, and a customer service center, as well as through a network of ATMs. The company was founded in 1907 and is headquartered in Strasburg, Virginia.
About Banco Bradesco (Get Rating)
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 segment, 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; debit and business cards; financial and security services; consortium products; auto, personal accident, dental, travel, and life insurance; investment products; pension products; real estate and vehicle auctions; cash management, and foreign trade and exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.
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