Bank of Hawaii (NYSE:BOH) and Banco Bradesco (NYSE:BBDO) Critical Contrast

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

Analyst Ratings

This is a summary of current recommendations for Banco Bradesco and Bank of Hawaii, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	1	1	0	2.50
Bank of Hawaii	0	7	1	0	2.12

Bank of Hawaii has a consensus target price of $78.40, indicating a potential upside of 12.69%. Given Bank of Hawaii’s higher possible upside, analysts plainly believe Bank of Hawaii is more favorable than Banco Bradesco.

Risk and Volatility

Banco Bradesco has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Valuation and Earnings

This table compares Banco Bradesco and Bank of Hawaii”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	0.61	$4.24 billion	$0.46	5.22
Bank of Hawaii	$1.07 billion	2.56	$205.90 million	$5.65	12.31

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

Institutional & Insider Ownership

82.2% of Bank of Hawaii shares are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by insiders. Comparatively, 2.0% of Bank of Hawaii shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Banco Bradesco pays an annual dividend of $0.18 per share and has a dividend yield of 7.5%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.0%. Banco Bradesco pays out 39.1% of its earnings in the form of a dividend. Bank of Hawaii pays out 49.6% 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. Bank of Hawaii has increased its dividend for 1 consecutive years. Banco Bradesco is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Banco Bradesco and Bank of Hawaii’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	12.58%	15.06%	1.14%
Bank of Hawaii	22.89%	16.35%	1.03%

Summary

Bank of Hawaii beats Banco Bradesco on 10 of the 16 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 Bank of Hawaii

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, overdraft lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, as well as high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. This segment also offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment provides corporate asset and liability management services, including interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.