Contrasting Equity Bancshares (NASDAQ:EQBK) and Banco Bradesco (NYSE:BBDO)

Equity Bancshares (NASDAQ:EQBK) and Banco Bradesco (NYSE:BBDO) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

Equity Bancshares has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Dividends

Equity Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. Banco Bradesco pays an annual dividend of $0.02 per share and has a dividend yield of 1.1%. Equity Bancshares pays out 54.5% of its earnings in the form of a dividend. Banco Bradesco pays out 7.7% 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 Equity Bancshares and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equity Bancshares	6.36%	13.53%	1.22%
Banco Bradesco	7.43%	10.17%	0.86%

Valuation and Earnings

This table compares Equity Bancshares and Banco Bradesco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity Bancshares	$153.70 million	4.25	$7.82 million	$1.10	38.81
Banco Bradesco	$101.44 billion	0.19	$2.85 billion	$0.26	6.88

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

Institutional & Insider Ownership

71.8% of Equity Bancshares shares are held by institutional investors. 8.0% of Equity Bancshares shares are held by insiders. Comparatively, 0.3% of Banco Bradesco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Equity Bancshares and Banco Bradesco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity Bancshares	0	2	2	0	2.50
Banco Bradesco	0	0	0	0	0.00

Equity Bancshares presently has a consensus price target of $44.75, suggesting a potential upside of 4.83%. Given Equity Bancshares’ stronger consensus rating and higher probable upside, equities analysts clearly believe Equity Bancshares is more favorable than Banco Bradesco.

Summary

Equity Bancshares beats Banco Bradesco on 11 of the 16 factors compared between the two stocks.

About Equity Bancshares

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate, commercial lines of credit, working capital, term, equipment and aircraft financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products. The company's loan products also comprise 1 4 family residential mortgages, agriculture, consumer, residential real estate mortgage, and agricultural real estate and production loans. It also provides debit and credit cards; insurance brokerage; trust and wealth management; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. It operates a network of branches in Arkansas, Kansas, Missouri, and Oklahoma. Equity Bancshares, Inc. was incorporated in 2002 and is headquartered in Wichita, Kansas.

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.