International Bancshares (NASDAQ:IBOC – Get Free Report) and Banco Bradesco (NYSE:BBD – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current recommendations for International Bancshares and Banco Bradesco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Bancshares | 0 | 0 | 0 | 0 | N/A |
| Banco Bradesco | 0 | 5 | 4 | 0 | 2.44 |
Banco Bradesco has a consensus target price of $7.68, indicating a potential upside of 167.42%. Given Banco Bradesco’s higher possible upside, analysts plainly believe Banco Bradesco is more favorable than International Bancshares.
Risk & Volatility
Dividends
International Bancshares pays an annual dividend of $1.26 per share and has a dividend yield of 2.8%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. International Bancshares pays out 20.1% of its earnings in the form of a dividend. Banco Bradesco pays out 12.0% 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. International Bancshares has increased its dividend for 1 consecutive years and Banco Bradesco has increased its dividend for 1 consecutive years.
Profitability
This table compares International Bancshares and Banco Bradesco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Bancshares | 44.20% | 18.73% | 2.54% |
| Banco Bradesco | 7.80% | 9.53% | 0.83% |
Insider & Institutional Ownership
63.9% of International Bancshares shares are owned by institutional investors. Comparatively, 1.8% of Banco Bradesco shares are owned by institutional investors. 14.5% of International Bancshares shares are owned by company insiders. Comparatively, 0.3% of Banco Bradesco shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares International Bancshares and Banco Bradesco’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Bancshares | $712.91 million | 3.88 | $300.23 million | $6.28 | 7.10 |
| Banco Bradesco | $103.05 billion | 0.30 | $4.06 billion | $0.25 | 11.48 |
Banco Bradesco has higher revenue and earnings than International Bancshares. International Bancshares 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
International Bancshares beats Banco Bradesco on 9 of the 15 factors compared between the two stocks.
About International Bancshares
International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. International Bancshares Corporation was founded in 1966 and is headquartered in Laredo, Texas.
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; debit and business cards; financial and security services; consortium products; auto, personal accident, dental, travel, and life insurance; investment products; pension products; real estate and vehicle auctions; cash management, and foreign trade and exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.
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