Banco Santander Brasil (NYSE:BSBR) and American Business Bank (OTCMKTS:AMBZ) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Earnings and Valuation

This table compares Banco Santander Brasil and American Business Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander Brasil $22.66 billion 0.66 $4.16 billion $1.05 3.78
American Business Bank $88.80 million 2.22 $22.08 million N/A N/A

Banco Santander Brasil has higher revenue and earnings than American Business Bank.

Analyst Ratings

This is a summary of recent recommendations and price targets for Banco Santander Brasil and American Business Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander Brasil 0 3 2 0 2.40
American Business Bank 0 0 0 0 N/A

Banco Santander Brasil presently has a consensus target price of $9.75, suggesting a potential upside of 145.59%. Given Banco Santander Brasil’s higher probable upside, equities analysts plainly believe Banco Santander Brasil is more favorable than American Business Bank.

Profitability

This table compares Banco Santander Brasil and American Business Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander Brasil 17.70% 16.93% 2.17%
American Business Bank 24.13% N/A N/A

Volatility and Risk

Banco Santander Brasil has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, American Business Bank has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Insider and Institutional Ownership

0.9% of Banco Santander Brasil shares are owned by institutional investors. Comparatively, 4.7% of American Business Bank shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Banco Santander Brasil beats American Business Bank on 6 of the 11 factors compared between the two stocks.

About Banco Santander Brasil

Banco Santander (Brasil) S.A. provides commercial banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. It operates through two segments, Commercial Banking and Global Wholesale Banking. The company offers checking and savings accounts; priority services, such as withdrawals, debit cards, deposits, and transfers; onshore and offshore financial products and services, investment advice, and asset management services; consumer credit for purchasing motor vehicles, and other goods and services; local loans, commercial finance, trade finance, guarantees, structured loans, and cash management and funding solutions, as well as Banco Nacional de Desenvolvimento Econômico e Social on-lending transfer services; payroll, mortgage, and agribusiness loans, as well as microcredit; investment products; and credit cards and foreign exchange services. It also provides funding and financial advisory services related to projects, and origination and distribution of fixed-income securities in the debt capital markets, as well as financing for acquisitions and syndicated loans, other structured financing arrangements, and subordinated debt and energy efficiency transactions. In addition, the company offers advisory services in mergers and acquisitions, and equity capital markets transactions; stock brokerage and advisory, equity, and equity research services; derivative and investment products; and digital payment solutions. Further, it operates Webmotors, an online automotive classified. The company provides its products and services through branches, mini-branches, and ATMs; call centers; and digital channels, such as Internet banking and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil.

About American Business Bank

American Business Bank provides various banking and financial services to wholesalers, manufacturers, businesses, professionals, and non-profits in California. Its deposit products include checking, money market, savings, business demand deposit, business money market, special deposit, zero balance, and sweep accounts, as well as certificates of deposit. The company's loan products comprise personal loans, lines of credit, short term working capital lines, term loans, commercial/industrial real estate loans, and accounts receivable lines. It also offers various services, such as telephone notification, lock box processing, investment, courier, remote deposit, consulting, general business advice, investment banking, investment management, equipment leasing, residential mortgage lending, and professional referral services, as well as online banking services consisting of bill payment, fund transfer, account information, automatic clearing house origination, stop payment, and wire transfer services; and provides credit cards and ATM cards. In addition, the company offers international banking services, including international money transfer, letters of credit, foreign currency deposit, documentary and cleaning collection, and foreign currency exchange services. It operates through five loan production offices in Anaheim, Irvine, Torrance, the Warner Center, and Ontario. American Business Bank was founded in 1998 and is headquartered in Los Angeles, California.

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