Financial Contrast: National Bank of Canada (OTCMKTS:NTIOF) vs. Banco Do Brasil (OTCMKTS:BDORY)

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

Risk & Volatility

National Bank of Canada has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Bank of Canada	14.49%	16.10%	0.85%
Banco Do Brasil	3.34%	9.07%	0.69%

Analyst Recommendations

This is a breakdown of current ratings and price targets for National Bank of Canada and Banco Do Brasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bank of Canada	0	6	2	0	2.25
Banco Do Brasil	1	2	0	0	1.67

Earnings and Valuation

This table compares National Bank of Canada and Banco Do Brasil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bank of Canada	$21.96 billion	2.54	$2.87 billion	$8.18	17.68
Banco Do Brasil	$66.83 billion	0.34	$2.45 billion	$0.41	9.61

National Bank of Canada has higher earnings, but lower revenue than Banco Do Brasil. Banco Do Brasil is trading at a lower price-to-earnings ratio than National Bank of Canada, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.1% of National Bank of Canada shares are held by institutional investors. Comparatively, 0.0% of Banco Do Brasil shares are held by institutional investors. 0.3% of National Bank of Canada shares are held by insiders. 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.

Dividends

National Bank of Canada pays an annual dividend of $3.63 per share and has a dividend yield of 2.5%. Banco Do Brasil pays an annual dividend of $0.03 per share and has a dividend yield of 0.8%. National Bank of Canada pays out 44.4% of its earnings in the form of a dividend. Banco Do Brasil pays out 7.3% 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

National Bank of Canada beats Banco Do Brasil on 13 of the 15 factors compared between the two stocks.

About National Bank of Canada

National Bank of Canada provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, and savings and investment solutions; various insurance products; and commercial banking services, such as credit, and deposit, investment solutions, international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complimentary services. The Wealth Management segment provides full-service brokerage, private banking, direct brokerage, investment solutions, administrative and trade execution, transaction products, and trust and estate services. The Financial Markets segment offers corporate banking, advisory, and capital markets services; and project financing, debt, and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segment provides specialty finance products; and personal and commercial banking in Cambodia. National Bank of Canada was founded in 1859 and is headquartered in Montreal, Canada.

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.