Financial Review: Banco Bradesco (NYSE:BBD) & National Australia Bank (OTCMKTS:NABZY)

National Australia Bank (OTCMKTS:NABZY) and Banco Bradesco (NYSE:BBD) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares National Australia Bank and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Australia Bank	N/A	N/A	N/A
Banco Bradesco	10.19%	13.78%	1.11%

Risk and Volatility

National Australia Bank has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Dividends

National Australia Bank pays an annual dividend of $0.52 per share and has a dividend yield of 3.7%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.5%. Banco Bradesco pays out 5.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for National Australia Bank and Banco Bradesco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Australia Bank	2	1	0	2	2.40
Banco Bradesco	0	0	4	0	3.00

National Australia Bank currently has a consensus target price of $38.00, suggesting a potential upside of 172.01%. Given National Australia Bank’s higher possible upside, analysts plainly believe National Australia Bank is more favorable than Banco Bradesco.

Valuation and Earnings

This table compares National Australia Bank and Banco Bradesco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Australia Bank	$38.78 billion	2.20	$4.35 billion	N/A	N/A
Banco Bradesco	$117.81 billion	0.35	$4.24 billion	$0.39	9.88

National Australia Bank has higher earnings, but lower revenue than Banco Bradesco.

Summary

National Australia Bank beats Banco Bradesco on 7 of the 13 factors compared between the two stocks.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.

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.