Comparing Banco Bradesco (NYSE:BBDO) & Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY)

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

Analyst Recommendations

This is a breakdown of current ratings for Akbank Turk Anonim Sirketi and Banco Bradesco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akbank Turk Anonim Sirketi	0	0	0	0	0.00
Banco Bradesco	0	1	0	0	2.00

Risk and Volatility

Akbank Turk Anonim Sirketi has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Akbank Turk Anonim Sirketi	6.62%	18.15%	1.60%
Banco Bradesco	9.76%	12.96%	1.07%

Dividends

Akbank Turk Anonim Sirketi pays an annual dividend of $0.04 per share and has a dividend yield of 1.4%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Akbank Turk Anonim Sirketi pays out 8.2% of its earnings in the form of a dividend. Banco Bradesco pays out 5.7% 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akbank Turk Anonim Sirketi	$17.96 billion	N/A	$1.29 billion	$0.49	5.80
Banco Bradesco	$117.80 billion	0.28	$3.20 billion	$0.35	8.89

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

Summary

Banco Bradesco beats Akbank Turk Anonim Sirketi on 7 of the 11 factors compared between the two stocks.

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.

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.