Financial Contrast: Banco Santander Brasil (NYSE:BSBR) and Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY)

Banco Santander Brasil (NYSE:BSBR) and Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares Banco Santander Brasil and Akbank Turk Anonim Sirketi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Santander Brasil	7.06%	10.49%	1.04%
Akbank Turk Anonim Sirketi	7.87%	21.12%	1.83%

Valuation and Earnings

This table compares Banco Santander Brasil and Akbank Turk Anonim Sirketi”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Santander Brasil	$42.52 billion	0.47	$2.29 billion	N/A	N/A
Akbank Turk Anonim Sirketi	$19.70 billion	0.37	$1.45 billion	$0.58	4.84

Banco Santander Brasil has higher revenue and earnings than Akbank Turk Anonim Sirketi.

Analyst Ratings

This is a summary of recent recommendations and price targets for Banco Santander Brasil and Akbank Turk Anonim Sirketi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Santander Brasil	2	1	1	0	1.75
Akbank Turk Anonim Sirketi	0	0	0	0	0.00

Banco Santander Brasil presently has a consensus price target of $6.50, suggesting a potential upside of 21.84%. Given Banco Santander Brasil’s stronger consensus rating and higher possible upside, research analysts plainly believe Banco Santander Brasil is more favorable than Akbank Turk Anonim Sirketi.

Insider and Institutional Ownership

14.5% of Banco Santander Brasil shares are held by institutional investors. 0.1% of Banco Santander Brasil shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Banco Santander Brasil has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Akbank Turk Anonim Sirketi has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Dividends

Banco Santander Brasil pays an annual dividend of $0.29 per share and has a dividend yield of 5.4%. Akbank Turk Anonim Sirketi pays an annual dividend of $0.08 per share and has a dividend yield of 2.8%. Akbank Turk Anonim Sirketi pays out 13.8% of its earnings in the form of a dividend.

Summary

Banco Santander Brasil beats Akbank Turk Anonim Sirketi on 10 of the 14 factors compared between the two stocks.

About Banco Santander Brasil

Banco Santander (Brasil) S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates through Commercial Banking and Global Wholesale Banking segments. It offers local loans, commercial financing options, development bank funds, and cash management services; export and import financing, guarantees, structuring of asset services. In addition, the company provides financing and advisory services for infrastructure projects and capital markets instruments, as well as offers equity transactions and mergers and acquisitions services. Further, it offers foreign exchange products, derivatives, and investments to institutional investors, corporate clients, and individuals. Additionally, the company provides research services, as well as offers brokerage services for corporate, institutional, and individual investors. Furthermore, it provides deposits and other bank funding instruments, and debit and credit cards. The company provides financial services and products to its customers through multichannel distribution network comprising branches, mini-branches, ATMs, call centers, Internet banking, and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil. The company operates as a subsidiary of Banco Santander, S.A.

About Akbank Turk Anonim Sirketi

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through Consumer Banking and Private Banking; Commercial Banking, Corporate Banking, and SME Banking; and Treasury, Other, and Unallovated segments. The company’s consumer banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and working capital management, delivering cash management services based on customers’ requests, such as collection and payment services, and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related to treasury products. Further, it provides financial leasing services, investment and pension funds management, and portfolio management, as well as offers payment services and issues electronic money. Akbank T.A.S. was incorporated in 1948 and is headquartered in Istanbul, Turkey.