Head-To-Head Contrast: Banco Bradesco (NYSE:BBD) and Texas Community Bancshares (NASDAQ:TCBS)

Texas Community Bancshares (NASDAQ:TCBS) and Banco Bradesco (NYSE:BBD) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Texas Community Bancshares and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Community Bancshares	12.68%	6.14%	0.76%
Banco Bradesco	10.55%	14.61%	1.11%

Risk and Volatility

Texas Community Bancshares has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Valuation and Earnings

This table compares Texas Community Bancshares and Banco Bradesco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Community Bancshares	$25.57 million	1.93	$2.84 million	$1.21	14.18
Banco Bradesco	$41.79 billion	1.06	$4.24 billion	$0.42	9.96

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

Dividends

Texas Community Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. Texas Community Bancshares pays out 19.8% of its earnings in the form of a dividend. Banco Bradesco pays out 7.1% 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. Texas Community Bancshares has increased its dividend for 1 consecutive years. Texas Community Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Texas Community Bancshares and Banco Bradesco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Community Bancshares	0	1	0	0	2.00
Banco Bradesco	0	2	4	0	2.67

Banco Bradesco has a consensus price target of $4.05, suggesting a potential downside of 3.23%. Given Banco Bradesco’s stronger consensus rating and higher probable upside, analysts clearly believe Banco Bradesco is more favorable than Texas Community Bancshares.

Institutional & Insider Ownership

15.8% of Texas Community Bancshares shares are held by institutional investors. 15.3% of Texas Community Bancshares shares are held by insiders. Comparatively, 0.3% of Banco Bradesco shares are held by 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.

Summary

Banco Bradesco beats Texas Community Bancshares on 9 of the 17 factors compared between the two stocks.

About Texas Community Bancshares

Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, Texas.

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.