Financial Contrast: Banco Santander (Brasil) (NYSE:BSBR) versus VersaBank (NASDAQ:VBNK)

Banco Santander (Brasil) (NYSE:BSBRGet Rating) and VersaBank (NASDAQ:VBNKGet Rating) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares Banco Santander (Brasil) and VersaBank’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander (Brasil) $16.79 billion 1.23 $2.88 billion $0.40 13.83
VersaBank $102.93 million 2.07 $17.60 million $0.61 12.84

Banco Santander (Brasil) has higher revenue and earnings than VersaBank. VersaBank is trading at a lower price-to-earnings ratio than Banco Santander (Brasil), indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Banco Santander (Brasil) has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, VersaBank has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Dividends

Banco Santander (Brasil) pays an annual dividend of $0.19 per share and has a dividend yield of 3.4%. VersaBank pays an annual dividend of $0.07 per share and has a dividend yield of 0.9%. Banco Santander (Brasil) pays out 47.5% of its earnings in the form of a dividend. VersaBank pays out 11.5% 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.

Institutional & Insider Ownership

14.5% of Banco Santander (Brasil) shares are owned by institutional investors. Comparatively, 30.2% of VersaBank shares are owned by institutional investors. 0.1% of Banco Santander (Brasil) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Banco Santander (Brasil) and VersaBank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander (Brasil) 3 0 0 0 1.00
VersaBank 0 0 2 0 3.00

Banco Santander (Brasil) currently has a consensus price target of $5.00, indicating a potential downside of 9.58%. VersaBank has a consensus price target of $9.00, indicating a potential upside of 14.94%. Given VersaBank’s stronger consensus rating and higher probable upside, analysts plainly believe VersaBank is more favorable than Banco Santander (Brasil).

Profitability

This table compares Banco Santander (Brasil) and VersaBank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander (Brasil) N/A N/A N/A
VersaBank 17.14% 6.54% 0.79%

Summary

VersaBank beats Banco Santander (Brasil) on 10 of the 16 factors compared between the two stocks.

About Banco Santander (Brasil)

(Get Rating)

Banco Santander (Brasil) SA engages in the provision of banking and financial services. It operates through the following segments: Commercial Bank and Global Wholesale Banking. The Commercial Bank segment focuses on loans, cards, mortgages, consumer financing, payroll, agribusiness, micro credit, and corporate and private banking. The Global Wholesale Banking segment offers financial services and structured solutions to its customers. The company was founded on August 9, 1985 and is headquartered in São Paulo, Brazil.

About VersaBank

(Get Rating)

VersaBank engages in the provision of financial services. It operates through Digital Banking and DRTC. The Digital Banking segment offers business to business model using its financial technoolgy to address issues in the US banking market. The DRTC segment refers to developed IT security software and capabilities. The company was founded by David Roy Taylor on January 18, 1993 and is headquartered in London, Canada.

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