Head to Head Contrast: Banco Do Brasil (OTCMKTS:BDORY) and Huntington Bancshares (NASDAQ:HBAN)

Banco Do Brasil (OTCMKTS:BDORY) and Huntington Bancshares (NASDAQ:HBAN) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares Banco Do Brasil and Huntington Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Do Brasil	$66.83 billion	0.27	$2.45 billion	$0.40	7.78
Huntington Bancshares	$10.34 billion	3.11	$2.21 billion	$1.21	13.13

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

Profitability

This table compares Banco Do Brasil and Huntington Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Do Brasil	3.14%	8.88%	0.67%
Huntington Bancshares	16.28%	10.93%	1.12%

Analyst Recommendations

This is a summary of current ratings for Banco Do Brasil and Huntington Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Do Brasil	3	0	0	0	1.00
Huntington Bancshares	2	7	13	1	2.57

Huntington Bancshares has a consensus target price of $18.89, suggesting a potential upside of 18.85%. Given Huntington Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Huntington Bancshares is more favorable than Banco Do Brasil.

Volatility and Risk

Banco Do Brasil has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Banco Do Brasil shares are held by institutional investors. Comparatively, 80.7% of Huntington Bancshares shares are held by institutional investors. 0.7% of Huntington Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Banco Do Brasil pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Huntington Bancshares pays an annual dividend of $0.62 per share and has a dividend yield of 3.9%. Banco Do Brasil pays out 5.0% of its earnings in the form of a dividend. Huntington Bancshares pays out 51.2% 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

Huntington Bancshares beats Banco Do Brasil on 14 of the 17 factors compared between the two stocks.

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.

About Huntington Bancshares

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. The company offers financial products and services to consumer and business customers, including deposits, lending, payments, mortgage banking, dealer financing, investment management, trust, brokerage, insurance, and other financial products and services. It also provides 24-hour grace, asterisk-free checking, money scout, $50 safety zone, standby cash, early pay, instant access, savings goal getter, and Huntington heads up; digitally powered consumer and business financial solutions to consumer lending, regional banking, branch banking, and wealth management customers; direct and indirect consumer loans, as well as dealer finance loans and deposits; and private banking, wealth management and legacy planning through investment and portfolio management, fiduciary administration and trust, institutional custody, and full-service retail brokerage investment services. The company offers equipment financing, asset-based lending, distribution finance, structured lending, and municipal financing solutions, as well as Huntington ChoicePay. In addition, it offers lending, liquidity, treasury management and other payment services, and capital markets; government and non-profits, healthcare, technology and telecommunications, franchises, financial sponsors, and global services; and corporate risk management, institutional sales and trading, debt and equity issuance, and additional advisory services. The company offers its products through a network of channels, including branches and ATMs, online and mobile banking, and through customer call centers to customers in middle market banking, corporate, specialty, and government banking, asset finance, commercial real estate banking, and capital markets. The company was founded in 1866 and is headquartered in Columbus, Ohio.