Shinhan Financial Group (NYSE:SHG) vs. Banco Bradesco (NYSE:BBDO) Financial Survey

Banco Bradesco (NYSE:BBDO) and Shinhan Financial Group (NYSE:SHG) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.1%. Shinhan Financial Group pays an annual dividend of $1.27 per share and has a dividend yield of 2.6%. Banco Bradesco pays out 8.6% of its earnings in the form of a dividend. Shinhan Financial Group pays out 12.7% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	9.76%	12.96%	1.07%
Shinhan Financial Group	21.21%	12.27%	0.98%

Institutional and Insider Ownership

7.8% of Shinhan Financial Group shares are held by institutional investors. 0.3% of Banco Bradesco shares are held by insiders. Comparatively, 1.0% of Shinhan Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Banco Bradesco and Shinhan Financial Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$37.55 billion	0.78	$3.20 billion	$0.35	7.84
Shinhan Financial Group	$17,980.80 billion	0.00	$3.12 billion	$9.98	4.90

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

Risk and Volatility

Banco Bradesco has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Banco Bradesco and Shinhan Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	1	0	0	2.00
Shinhan Financial Group	0	1	1	0	2.50

Summary

Shinhan Financial Group beats Banco Bradesco on 9 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 Shinhan Financial Group

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through six segments: Banking, Credit Card, Securities, Insurance, Credit, and Others. It offers retail banking services, including demand, savings, and fixed deposit-taking; checking accounts; mortgage and home equity, and retail lending; electronic banking and automatic teller machines (ATM); and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services. The company also provides corporate banking services, such as investment banking, real estate financing, overseas real estate and development project financing, infrastructure and structured financing, equity/venture investments, mergers and acquisitions consulting; securitization and derivatives services comprising securities and derivative products, and foreign exchange trading; business expansion financing and consulting services; and working capital loans and facilities loans. In addition, it is involved in treasury and investment activities in international capital markets consisting of foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services, and foreign banking operations. Further, the company offers real estate trust, investment advisory, venture business investment, life and non-life insurance, trust account management, securities brokerage, and asset management services, as well as leasing and equipment financing, savings banking, loan collection and credit reporting, collective investment administration, private equity investment, and financial system development services. Additionally, it provides transaction history inquiries and fund transfers, opening letters of credit, trade finance, payment and collection management, sales and acquisition settlement, business-to-business settlement, sweeping, pooling, ERP interface, host-to-host banking, SWIFT SCORE, and cash and liquidity management service. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.