Contrasting Banco Bradesco (NYSE:BBDO) & Truxton (OTCMKTS:TRUX)

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

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.5%. Truxton pays an annual dividend of $1.72 per share and has a dividend yield of 2.6%. Banco Bradesco pays out 13.0% of its earnings in the form of a dividend. Truxton pays out 28.5% 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.

Institutional & Insider Ownership

0.4% of Truxton shares are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Banco Bradesco and Truxton, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	0	0	0	N/A
Truxton	0	0	0	0	N/A

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	6.70%	9.55%	0.83%
Truxton	23.95%	N/A	N/A

Volatility & Risk

Banco Bradesco has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Truxton has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Earnings and Valuation

This table compares Banco Bradesco and Truxton’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$39.41 billion	N/A	$2.85 billion	$0.23	8.87
Truxton	$67.30 million	2.86	$17.54 million	$6.04	10.93

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

Summary

Banco Bradesco beats Truxton on 7 of the 12 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 Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.