Westamerica Bancorporation (NASDAQ: WABCGet a rating) and BANCO DO BRASIL/S (OTCMKTS: BDORYGet a rating) are both finance companies, but which is the superior investment? We’ll compare the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Dividends

Westamerica Bancorporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. BANCO DO BRASIL/S pays an annual dividend of $0.13 per share and has a dividend yield of 1.7%. Westamerica Bancorporation pays 52.2% of its profits as a dividend. BANCO DO BRASIL/S distributes 10.2% of its profits in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Westamerica Bancorporation has increased its dividend for 29 consecutive years. Westamerica Bancorporation is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This table compares the gross revenue, earnings per share (EPS), and valuation of Westamerica Bancorporation and BANCO DO BRASIL/S.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Westamerica Bancorporation $216.79 million 7.32 $86.51 million $3.22 6:34 p.m.
BANCO DO BRASIL/S $24.14 billion N / A $3.63 billion $1.27 5.87

BANCO DO BRASIL/S has higher revenues and profits than Westamerica Bancorporation. BANCO DO BRASIL/S trades at a lower price-to-earnings ratio than Westamerica Bancorporation, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

Westamerica Bancorporation has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. In comparison, BANCO DO BRASIL/S has a beta of 0.63, suggesting that the stock price of its stock is 37% less volatile than the S&P 500. .

Profitability

This table compares the net margins, return on equity and return on assets of Westamerica Bancorporation and BANCO DO BRASIL/S.

Net margins Return on equity return on assets
Westamerica Bancorporation 39.90% 10.43% 1.20%
BANCO DO BRASIL/S 15.07% 13.44% 1.02%

Insider and Institutional Ownership

81.2% of the shares of Westamerica Bancorporation are held by institutional investors. Comparatively, 0.0% of BANCO DO BRASIL/S shares are held by institutional investors. 4.2% of the shares of Westamerica Bancorporation are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of the current price recommendations and targets for Westamerica Bancorporation and BANCO DO BRASIL/S, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Westamerica Bancorporation 0 0 1 0 3.00
BANCO DO BRASIL/S 0 0 1 0 3.00

Westamerica Bancorporation currently has a consensus price target of $75.00, suggesting a potential upside of 27.03%. Given Westamerica Bancorporation’s likely higher upside, equity research analysts clearly believe that Westamerica Bancorporation is more favorable than BANCO DO BRASIL/S.

Summary

Westamerica Bancorporation beats BANCO DO BRASIL/S on 9 of the 14 factors compared between the two stocks.

Company Profile Westamerica Bancorporation (Get a rating)

Westamerica Bancorporation operates as a bank holding company for Westamerica Bank which provides various personal and business banking products and services. The Company accepts various deposit products, including retail savings and checking accounts, and certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate loans, construction and consumer real estate loans, as well as indirect auto loans. It operates through 78 branches in 21 counties in northern and central California. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was incorporated in 1972 and is headquartered in San Rafael, California.

Company Profile BANCO DO BRASIL/S (Get a rating)

Banco do Brasil SA provides banking products and services to individuals, businesses and the public sectors in Brazil and abroad. The Company’s banking segment offers various products and services, including deposits, loans and services to the retail, wholesale and public sector markets, as well as micro-entrepreneurs and the low-income population. Its Investments segment is engaged in the intermediation and distribution of debt in the primary and secondary markets; capital investment activities; and provision of financial services. The Company’s Fund Management segment is involved in the buying, selling and custody of securities, as well as the management of portfolios, funds and investment clubs. Its Insurance, Retirement and Capitalization segment offers life, property and automobile insurance products, as well as private pension and capitalization plans. The Company’s Payment Methods segment is involved in electronically funding, transmitting, processing and settling transactions. Its Others segment provides credit collection and consortium administration services; development, manufacture, rental and integration of digital electronic systems and equipment, peripherals, programs, inputs and computer supplies; air ticket brokerage; and hosting and organizing events. Banco do Brasil SA was founded in 1808 and is headquartered in Brasalia, Brazil.



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