Analyzing Banco Bradesco (NYSE:BBDO) and Atlantic Union Bankshares (NYSE:AUB)

Banco Bradesco (NYSE:BBDO) and Atlantic Union Bankshares (NYSE:AUB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

78.6% of Atlantic Union Bankshares shares are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by company insiders. Comparatively, 1.0% of Atlantic Union Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Banco Bradesco and Atlantic Union Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	1	0	0	2.00
Atlantic Union Bankshares	0	3	5	0	2.62

Atlantic Union Bankshares has a consensus target price of $46.33, indicating a potential upside of 21.93%. Given Atlantic Union Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe Atlantic Union Bankshares is more favorable than Banco Bradesco.

Profitability

This table compares Banco Bradesco and Atlantic Union Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	10.20%	14.61%	1.11%
Atlantic Union Bankshares	21.97%	10.55%	1.41%

Volatility and Risk

Banco Bradesco has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Atlantic Union Bankshares has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Dividends

Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Atlantic Union Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 3.9%. Banco Bradesco pays out 4.8% of its earnings in the form of a dividend. Atlantic Union Bankshares pays out 44.2% 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. Atlantic Union Bankshares has increased its dividend for 14 consecutive years. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Banco Bradesco and Atlantic Union Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$123.82 billion	0.26	$4.24 billion	$0.42	7.30
Atlantic Union Bankshares	$1.53 billion	3.54	$273.71 million	$3.35	11.34

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

Summary

Atlantic Union Bankshares beats Banco Bradesco on 13 of the 17 factors compared between the two stocks.

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.

About Atlantic Union Bankshares

Atlantic Union Bankshares Corporation operates as the bank holding company for Atlantic Union Bank that provides banking and related financial products and services to consumers and businesses in the United States. It operates in two segments, Wholesale Banking and Consumer Banking. The company accepts various deposit products, including checking, savings, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes, as well as debit and credit cards. In addition, it provides treasury management and capital market, wealth management, private banking, trust, financial and retirement planning, brokerage, investment management, equipment finance, mortgage banking, and insurance products and services. The company offers products and services through full-service branches and ATMs, as well as through its mobile and internet banking. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Glen Allen, Virginia.