Financial Analysis: Southern States Bancshares (NASDAQ:SSBK) and Banco Bradesco (NYSE:BBD)

Banco Bradesco (NYSE:BBD) and Southern States Bancshares (NASDAQ:SSBK) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares Banco Bradesco and Southern States Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$39.41 billion	N/A	$2.85 billion	$0.26	9.15
Southern States Bancshares	$141.13 million	2.32	$31.95 million	$3.55	10.32

Banco Bradesco has higher revenue and earnings than Southern States Bancshares. Banco Bradesco is trading at a lower price-to-earnings ratio than Southern States Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.3%. Southern States Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Banco Bradesco pays out 11.5% of its earnings in the form of a dividend. Southern States Bancshares pays out 10.1% 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.

Volatility and Risk

Banco Bradesco has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Southern States Bancshares has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.

Profitability

This table compares Banco Bradesco and Southern States Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	7.43%	10.17%	0.86%
Southern States Bancshares	19.33%	14.88%	1.32%

Institutional & Insider Ownership

58.7% of Southern States Bancshares shares are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by insiders. Comparatively, 14.8% of Southern States Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Banco Bradesco and Southern States Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	2	1	0	2.33
Southern States Bancshares	0	0	2	0	3.00

Banco Bradesco currently has a consensus target price of $3.20, suggesting a potential upside of 34.45%. Southern States Bancshares has a consensus target price of $35.50, suggesting a potential downside of 3.08%. Given Banco Bradesco’s higher probable upside, analysts plainly believe Banco Bradesco is more favorable than Southern States Bancshares.

Summary

Southern States Bancshares beats Banco Bradesco on 10 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 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; overdraft and agribusiness loans; debit and business cards; financial and security services; consortium products; car, personal accident, dental, travel, and life insurance; investment products; pension products; foreign currency exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.

About Southern States Bancshares

Southern States Bancshares, Inc. operates as the bank holding company for Southern States Bank that provides community banking services to businesses and individuals. The company provides various deposit products, such as savings, money market, and noninterest-bearing demand accounts; certificates of deposit; and time deposits. It offers real estate loan products, including loans for real estate construction and development, residential mortgages, and commercial real estate mortgage loans; commercial and industrial loans; and direct consumer installment loans, overdrafts, and other revolving credit loans. In addition, it offers online and mobile banking, and ATM services. Southern States Bancshares, Inc. was founded in 2007 and is headquartered in Anniston, Alabama.