Banco Bradesco (NYSE:BBD – Get Rating) and Coastal Financial (NASDAQ:CCB – Get Rating) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Risk and Volatility
Banco Bradesco has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
This table compares Banco Bradesco and Coastal Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Banco Bradesco currently has a consensus price target of $12.58, suggesting a potential upside of 339.69%. Coastal Financial has a consensus price target of $63.00, suggesting a potential upside of 39.29%. Given Banco Bradesco’s higher probable upside, analysts clearly believe Banco Bradesco is more favorable than Coastal Financial.
Valuation & Earnings
This table compares Banco Bradesco and Coastal Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Banco Bradesco||$22.16 billion||1.38||$4.07 billion||$0.40||7.07|
|Coastal Financial||$111.20 million||5.27||$27.00 million||$2.61||17.33|
Banco Bradesco has higher revenue and earnings than Coastal Financial. Banco Bradesco is trading at a lower price-to-earnings ratio than Coastal Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
2.4% of Banco Bradesco shares are held by institutional investors. Comparatively, 56.4% of Coastal Financial shares are held by institutional investors. 0.3% of Banco Bradesco shares are held by company insiders. Comparatively, 19.5% of Coastal Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Coastal Financial beats Banco Bradesco on 9 of the 15 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 segment, 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. Banco Bradesco S.A. operates as a subsidiary of Cidade de Deus – Companhia Comercial de Participações.
About Coastal Financial
Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection. It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards. In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services. It operates 14 full-service banking locations. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.
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