Banco Bradesco SA (BBD) vs Banco Santander Brasil SA (BSBR)

Banco Bradesco SA and Banco Santander Brasil SA are both Banks Regional companies. Banco Santander Brasil SA is the larger, with a market value of $21.4B against $19.0B — 1.1× the size. Banco Santander Brasil SA trades at the lower P/E: 7.6× against 8.1×. Banco Bradesco SA grew revenue faster over the last twelve months: 35.6% against 18.6%. Banco Santander Brasil SA has the higher net margin (7.49% vs 7.16%) and the lower return on invested capital (13.4% vs 886.7%). Both pay a dividend; Banco Bradesco SA yields more (6.73% vs 6.37%). Across the 20 metrics below, Banco Santander Brasil SA leads on 11 and Banco Bradesco SA on 9.

Valuation

Metric BBD BSBR Banks Regional median
P/E 8.12 7.59 12.15
P/S 0.56 0.63 2.37
P/B 1.00 0.86 1.21
Price to free cash flow 30.70 2.86 10.80
EV/EBITDA n/m n/m —
EV/Sales 0.00 1.04 2.27
Earnings yield 12.32% 13.17% 8.11%
Free cash flow yield 3.26% 34.98% 8.98%

Profitability

Metric BBD BSBR Banks Regional median
Gross margin 35.95% 40.78% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 7.16% 7.49% 18.66%
Free cash flow margin 1.82% 22.08% 21.18%
Return on equity 13.76% 10.99% 10.64%
Return on assets 1.06% 1.10% 1.13%
Return on invested capital 886.68% 13.40% 8.33%

Growth

Metric BBD BSBR Banks Regional median
Revenue growth (TTM) 35.61% 18.60% 6.61%
EPS growth (last fiscal year) 31.03% 5.26% —
Revenue growth, 5-year CAGR 16.20% 20.06% 12.30%
Net income growth, 5-year CAGR 5.72% (2.56%) 9.71%

Health

Metric BBD BSBR Banks Regional median
Debt to equity 2.93 3.34 0.22
Current ratio 1.48 1.56 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BBD BSBR Banks Regional median
Dividend yield 6.73% 6.37% 3.75%
Payout ratio 0.72 1.27 0.27

Size

Metric BBD BSBR Banks Regional median
Market cap 19.02b 21.38b 921.07m

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