Head-To-Head Analysis: Webster Financial (WBS) & BANCO DO BRASIL/S (BDORY)

BANCO DO BRASIL/S (OTCMKTS:BDORY) and Webster Financial (NYSE:WBS) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Valuation & Earnings

This table compares BANCO DO BRASIL/S and Webster Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BANCO DO BRASIL/S $35.32 billion 1.03 $3.52 billion N/A N/A
Webster Financial $1.34 billion 3.70 $360.42 million $3.74 14.33

BANCO DO BRASIL/S has higher revenue and earnings than Webster Financial.

Dividends

BANCO DO BRASIL/S pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Webster Financial pays an annual dividend of $1.32 per share and has a dividend yield of 2.5%. Webster Financial pays out 35.3% of its earnings in the form of a dividend. Webster Financial has raised its dividend for 8 consecutive years. Webster Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

91.3% of Webster Financial shares are held by institutional investors. 1.5% of Webster Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

BANCO DO BRASIL/S has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Webster Financial has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Profitability

This table compares BANCO DO BRASIL/S and Webster Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BANCO DO BRASIL/S 9.52% 12.39% 0.88%
Webster Financial 27.57% 13.77% 1.36%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BANCO DO BRASIL/S 0 0 1 0 3.00
Webster Financial 1 3 3 0 2.29

Webster Financial has a consensus price target of $62.80, suggesting a potential upside of 17.19%. Given Webster Financial’s higher possible upside, analysts plainly believe Webster Financial is more favorable than BANCO DO BRASIL/S.

Summary

Webster Financial beats BANCO DO BRASIL/S on 12 of the 16 factors compared between the two stocks.

BANCO DO BRASIL/S Company Profile

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasília, Brazil.

Webster Financial Company Profile

Webster Financial Corporation operates as the holding company for Webster Bank, National Association that provides a range of banking, investment, and financial services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Community Banking. The Commercial Banking segment provides lending, deposit, and cash management services to middle market companies; and commercial and industrial lending and leasing, commercial real estate lending, equipment financing, and asset-based lending, as well as treasury and payment services. This segment also offers relationship banking services for high net worth clients, not-for-profit organizations, and business clients with deposit and loan products; and asset management, financial planning, and trust services. The HSA Bank segment offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions to employers for the benefit of their employees and individuals. The Community Banking segment offers deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans, and credit cards to consumers, as well as investment and securities-related services, including brokerage and investment advice through a strategic partnership with LPL Financial Holdings Inc. This segment also provides credit, deposit, and cash flow management products to businesses and professional service firms. The company also provides telephone and mobile banking services, as well as through its Website. As of February 21, 2019, it operated 157 banking centers and 316 ATMs. Webster Financial Corporation was founded in 1935 and is headquartered in Waterbury, Connecticut.

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