Comparing Orix Corp Ads (NYSE:IX) & BB Seguridade Participacoes (OTCMKTS:BBSEY)

BB Seguridade Participacoes (OTCMKTS:BBSEY) and Orix Corp Ads (NYSE:IX) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Insider and Institutional Ownership

0.0% of BB Seguridade Participacoes shares are owned by institutional investors. Comparatively, 1.7% of Orix Corp Ads shares are owned by institutional investors. 0.1% of Orix Corp Ads shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for BB Seguridade Participacoes and Orix Corp Ads, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BB Seguridade Participacoes	0	3	0	0	2.00
Orix Corp Ads	0	1	1	0	2.50

Dividends

BB Seguridade Participacoes pays an annual dividend of $0.66 per share and has a dividend yield of 8.8%. Orix Corp Ads pays an annual dividend of $0.58 per share and has a dividend yield of 1.5%. BB Seguridade Participacoes pays out 73.3% of its earnings in the form of a dividend. Orix Corp Ads pays out 16.0% 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.

Volatility & Risk

BB Seguridade Participacoes has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Orix Corp Ads has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Earnings and Valuation

This table compares BB Seguridade Participacoes and Orix Corp Ads”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BB Seguridade Participacoes	$1.85 billion	7.83	$1.61 billion	$0.90	8.29
Orix Corp Ads	$2,286.38 billion	0.02	$2.95 billion	$3.62	10.81

Orix Corp Ads has higher revenue and earnings than BB Seguridade Participacoes. BB Seguridade Participacoes is trading at a lower price-to-earnings ratio than Orix Corp Ads, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BB Seguridade Participacoes and Orix Corp Ads’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BB Seguridade Participacoes	87.94%	78.75%	44.90%
Orix Corp Ads	18.02%	13.11%	3.38%

Summary

Orix Corp Ads beats BB Seguridade Participacoes on 10 of the 15 factors compared between the two stocks.

About BB Seguridade Participacoes

BB Seguridade Participações S.A., through its subsidiaries operates in the insurance, pension plans, and bonds, businesses in Brazil. The company operates through Security and Brokerage segments. The Security segment offers life, property, rural, special risks and financial, transport, hulls, and housing people insurance products. It also offers pension plans, dental, and capitalization plans. The Brokerage segment engages in the brokerage, management, and promotion of pension plans, capitalization, capitalization, and dental plans. BB Seguridade Participações S.A. was incorporated in 2012 and is headquartered in Brasilia, Brazil. BB Seguridade Participações S.A. operates as a subsidiary of Banco do Brasil S.A.

About Orix Corp Ads

ORIX Corporation provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East. The company's Corporate Financial Services and Maintenance Leasing segment is involved in the finance and fee; leasing and rental of automobiles, electronic measuring instruments, and ICT-related equipment businesses; and provision of life insurance and environment and energy-related products and services. Its Real Estate segment develops, rents, and manages real estate properties; operates facilities; real estate asset management; manages residential condominiums and office building; and provides construction contracting, real estate brokerage, and real estate investment advisory services, as well as operates hotels and Japanese inns. The company's PE Investment and Concession segment engages in the private equity (PE) investment and concession businesses. Its Environment and Energy segment provides renewable energy; ESCO; retails electric power; sells solar panels and battery electricity storage systems; and recycling and waste management services, as well as generates solar power. The company's Insurance segment sells life insurance products through agents, banks, and other financial institutions, as well as face-to-face and online. Its Banking and Credit segment provides banking and consumer finance services. The company's Aircraft and Ships segment engages in the aircraft leasing and management, and ship-related finance and investment businesses. Its ORIX USA segment offers finance, investment, and asset management services. The company's ORIX Europe segment provides equity and fixed income asset management services. Its Asia and Australia segment offers finance and investment businesses. The company was formerly known as Orient Leasing Co., Ltd. and changed its name to ORIX Corporation in 1989. ORIX Corporation was incorporated in 1950 and is headquartered in Tokyo, Japan.