Reviewing Shore Bancshares (NASDAQ:SHBI) and Banco Bradesco (NYSE:BBDO)

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

Volatility & Risk

Shore Bancshares has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Valuation and Earnings

This table compares Shore Bancshares and Banco Bradesco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shore Bancshares	$342.72 million	2.20	$59.51 million	$1.98	11.39
Banco Bradesco	$123.82 billion	0.31	$4.24 billion	$0.42	8.52

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

Institutional & Insider Ownership

59.8% of Shore Bancshares shares are held by institutional investors. 8.7% of Shore Bancshares shares are held by company insiders. Comparatively, 0.3% of Banco Bradesco shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shore Bancshares	19.15%	12.11%	1.16%
Banco Bradesco	10.20%	14.61%	1.11%

Dividends

Shore Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Shore Bancshares pays out 28.3% of its earnings in the form of a dividend. Banco Bradesco pays out 4.8% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Shore Bancshares and Banco Bradesco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shore Bancshares	0	3	3	0	2.50
Banco Bradesco	0	0	1	0	3.00

Shore Bancshares currently has a consensus price target of $25.75, suggesting a potential upside of 14.19%. Given Shore Bancshares’ higher probable upside, equities analysts plainly believe Shore Bancshares is more favorable than Banco Bradesco.

Summary

Shore Bancshares beats Banco Bradesco on 11 of the 16 factors compared between the two stocks.

About Shore Bancshares

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank, N.A. that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers trust, asset management, and financial planning services; treasury management services, such as merchant card processing, remote deposit capture, and ACH origination, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; and automatic teller machine services. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland.

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.