Financial Review: Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) versus BANCO DO BRASIL/S (OTCMKTS:BDORY)

BANCO DO BRASIL/S (OTCMKTS:BDORY) and Svenska Handelsbanken AB (publ) (OTCMKTS:SVNLY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Dividends

BANCO DO BRASIL/S pays an annual dividend of $0.09 per share and has a dividend yield of 1.8%. Svenska Handelsbanken AB (publ) pays an annual dividend of $0.38 per share and has a dividend yield of 6.5%. BANCO DO BRASIL/S pays out 8.0% of its earnings in the form of a dividend. Svenska Handelsbanken AB (publ) pays out 58.5% 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.

Insider and Institutional Ownership

0.0% of BANCO DO BRASIL/S shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

BANCO DO BRASIL/S has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Svenska Handelsbanken AB (publ) has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Valuation and Earnings

This table compares BANCO DO BRASIL/S and Svenska Handelsbanken AB (publ)”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BANCO DO BRASIL/S	$53.93 billion	0.52	$6.77 billion	$1.13	4.31
Svenska Handelsbanken AB (publ)	$17.44 billion	N/A	$2.74 billion	$0.65	9.00

BANCO DO BRASIL/S has higher revenue and earnings than Svenska Handelsbanken AB (publ). BANCO DO BRASIL/S is trading at a lower price-to-earnings ratio than Svenska Handelsbanken AB (publ), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BANCO DO BRASIL/S and Svenska Handelsbanken AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BANCO DO BRASIL/S	12.34%	18.68%	1.46%
Svenska Handelsbanken AB (publ)	14.89%	13.86%	0.72%

Analyst Recommendations

This is a summary of current recommendations and price targets for BANCO DO BRASIL/S and Svenska Handelsbanken AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BANCO DO BRASIL/S	0	2	0	0	2.00
Svenska Handelsbanken AB (publ)	1	0	0	0	1.00

Summary

BANCO DO BRASIL/S beats Svenska Handelsbanken AB (publ) on 9 of the 12 factors compared between the two stocks.

About BANCO DO BRASIL/S

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.

About Svenska Handelsbanken AB (publ)

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.