Contrasting BANCO DO BRASIL/S (OTCMKTS:BDORY) and Synovus Financial (OTCMKTS:SNV)

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

Dividends

Synovus Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. BANCO DO BRASIL/S pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Synovus Financial pays out 33.0% of its earnings in the form of a dividend. Synovus Financial has increased its dividend for 5 consecutive years. Synovus Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Synovus Financial 24.36% 15.58% 1.42%
BANCO DO BRASIL/S 10.20% 13.80% 0.98%

Volatility & Risk

Synovus Financial has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, BANCO DO BRASIL/S has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Synovus Financial and BANCO DO BRASIL/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synovus Financial 0 2 10 1 2.92
BANCO DO BRASIL/S 0 0 2 0 3.00

Synovus Financial currently has a consensus target price of $44.48, indicating a potential upside of 34.41%. Given Synovus Financial’s higher possible upside, equities research analysts clearly believe Synovus Financial is more favorable than BANCO DO BRASIL/S.

Insider and Institutional Ownership

82.2% of Synovus Financial shares are held by institutional investors. 1.0% of Synovus Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Synovus Financial and BANCO DO BRASIL/S’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synovus Financial $1.62 billion 3.21 $428.48 million $3.64 9.09
BANCO DO BRASIL/S $35.32 billion 1.10 $3.52 billion N/A N/A

BANCO DO BRASIL/S has higher revenue and earnings than Synovus Financial.

Summary

Synovus Financial beats BANCO DO BRASIL/S on 12 of the 17 factors compared between the two stocks.

Synovus Financial Company Profile

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides various financial products and services. It offers integrated financial services, including commercial and retail banking, financial management, insurance, and mortgage services. The company's commercial banking services comprise treasury management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans. Its retail banking services consist of accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet-based banking services; and bank credit card services, including Visa and MasterCard services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, asset management and financial planning services, and individual investment advice on equity and other securities, as well as trust services. As of December 31, 2018, it operated through 249 branches and 335 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Financial Corp. was founded in 1888 and is headquartered in Columbus, Georgia.

BANCO DO BRASIL/S Company Profile

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 Brasília, Brazil.

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