Critical Survey: First Citizens BancShares (NASDAQ:FCNCA) versus Banco Bradesco (NYSE:BBDO)

First Citizens BancShares (NASDAQ:FCNCA) and Banco Bradesco (NYSE:BBDO) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Dividends

First Citizens BancShares pays an annual dividend of $7.80 per share and has a dividend yield of 0.4%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. First Citizens BancShares pays out 4.5% of its earnings in the form of a dividend. Banco Bradesco pays out 8.7% 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.

Profitability

This table compares First Citizens BancShares and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Citizens BancShares	17.36%	13.63%	1.33%
Banco Bradesco	7.07%	10.01%	0.84%

Analyst Ratings

This is a summary of recent ratings and target prices for First Citizens BancShares and Banco Bradesco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Citizens BancShares	0	4	6	0	2.60
Banco Bradesco	0	0	0	0	0.00

First Citizens BancShares currently has a consensus price target of $2,025.90, indicating a potential downside of 7.68%. Given First Citizens BancShares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe First Citizens BancShares is more favorable than Banco Bradesco.

Institutional & Insider Ownership

61.2% of First Citizens BancShares shares are owned by institutional investors. 13.4% of First Citizens BancShares shares are owned by insiders. Comparatively, 0.3% of Banco Bradesco 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.

Risk and Volatility

First Citizens BancShares has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Valuation & Earnings

This table compares First Citizens BancShares and Banco Bradesco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Citizens BancShares	$9.67 billion	3.28	$11.47 billion	$174.55	12.57
Banco Bradesco	$101.44 billion	0.23	$2.85 billion	$0.23	9.35

First Citizens BancShares has higher earnings, but lower revenue than Banco Bradesco. Banco Bradesco is trading at a lower price-to-earnings ratio than First Citizens BancShares, indicating that it is currently the more affordable of the two stocks.

Summary

First Citizens BancShares beats Banco Bradesco on 13 of the 16 factors compared between the two stocks.

About First Citizens BancShares

First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services to individuals, businesses, and professionals. The company's deposit products include checking, savings, money market, and time deposit accounts. Its loan product portfolio comprises commercial construction and mortgage; and commercial and industrial leases, as well as small business administration loans. In addition, the company offers consumer loans, such as residential and revolving mortgage, consumer auto, and other consumer loans. Further, it provides wealth management services, including annuities, brokerage services, and third-party mutual funds, as well as investment management and advisory services. The company provides its products and services through its branch network. First Citizens BancShares, Inc. was founded in 1898 and is headquartered in Raleigh, North Carolina.

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.