National Bank (NYSE:NBHC) & BANCO DO BRASIL/S (OTCMKTS:BDORY) Head-To-Head Review

National Bank (NYSE:NBHC) and BANCO DO BRASIL/S (OTCMKTS:BDORY) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

National Bank has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, BANCO DO BRASIL/S has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares National Bank and BANCO DO BRASIL/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Bank	25.40%	12.20%	1.43%
BANCO DO BRASIL/S	11.84%	18.85%	1.51%

Institutional and Insider Ownership

92.7% of National Bank shares are held by institutional investors. Comparatively, 0.0% of BANCO DO BRASIL/S shares are held by institutional investors. 3.3% of National Bank shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

National Bank pays an annual dividend of $1.08 per share and has a dividend yield of 3.3%. BANCO DO BRASIL/S pays an annual dividend of $0.28 per share and has a dividend yield of 2.7%. National Bank pays out 29.0% of its earnings in the form of a dividend. BANCO DO BRASIL/S pays out 12.7% 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. National Bank has increased its dividend for 3 consecutive years. National Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for National Bank and BANCO DO BRASIL/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bank	0	1	1	0	2.50
BANCO DO BRASIL/S	0	0	0	0	N/A

National Bank presently has a consensus target price of $37.50, indicating a potential upside of 15.14%. Given National Bank’s higher possible upside, equities research analysts clearly believe National Bank is more favorable than BANCO DO BRASIL/S.

Earnings & Valuation

This table compares National Bank and BANCO DO BRASIL/S’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bank	$559.33 million	2.20	$142.05 million	$3.72	8.76
BANCO DO BRASIL/S	$53.93 billion	0.56	$5.98 billion	$2.20	4.77

BANCO DO BRASIL/S has higher revenue and earnings than National Bank. BANCO DO BRASIL/S is trading at a lower price-to-earnings ratio than National Bank, indicating that it is currently the more affordable of the two stocks.

Summary

National Bank beats BANCO DO BRASIL/S on 10 of the 16 factors compared between the two stocks.

About National Bank

National Bank Holdings Corporation operates as the bank holding company for NBH Bank that provides various banking products and financial services to commercial, business, and consumer clients in the United States. It offers deposit products, including checking, savings, money market, and other deposit accounts, including fixed-rate and fixed maturity time deposits. The company also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, food and agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases; non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality, and retail buildings; small business administration loans to support small businesses and entrepreneurs; term loans, line of credits, and real estate secured loans; residential real estate loans; and consumer loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. The company operates through a network of banking centers located in Colorado, the greater Kansas City region, New Mexico, Utah, Wyoming, Idaho, and Texas. It also operates ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. The company was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.

About BANCO DO BRASIL/S

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.