18/07/2024

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BANCO DO BRASIL/S (OTCMKTS:BDORY) & The PNC Financial Services Group (NYSE:PNC) Critical Comparison

BANCO DO BRASIL/S (OTCMKTS:BDORY) & The PNC Financial Services Group (NYSE:PNC) Critical Comparison

BANCO DO BRASIL/S (OTCMKTS:BDORYGet Rating) and The PNC Financial Services Group (NYSE:PNCGet Rating) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares BANCO DO BRASIL/S and The PNC Financial Services Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BANCO DO BRASIL/S $24.14 billion 0.90 $3.65 billion $1.44 5.29
The PNC Financial Services Group $19.70 billion 3.46 $5.67 billion $12.78 12.99

The PNC Financial Services Group has lower revenue, but higher earnings than BANCO DO BRASIL/S. BANCO DO BRASIL/S is trading at a lower price-to-earnings ratio than The PNC Financial Services Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

83.5% of The PNC Financial Services Group shares are owned by institutional investors. 0.3% of The PNC Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

BANCO DO BRASIL/S pays an annual dividend of $0.16 per share and has a dividend yield of 2.1%. The PNC Financial Services Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.6%. BANCO DO BRASIL/S pays out 11.1% of its earnings in the form of a dividend. The PNC Financial Services Group pays out 46.9% 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. The PNC Financial Services Group has increased its dividend for 12 consecutive years. The PNC Financial Services Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for BANCO DO BRASIL/S and The PNC Financial Services Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BANCO DO BRASIL/S 0 0 1 0 3.00
The PNC Financial Services Group 1 7 6 0 2.36

The PNC Financial Services Group has a consensus price target of $197.63, suggesting a potential upside of 19.03%. Given The PNC Financial Services Group’s higher probable upside, analysts clearly believe The PNC Financial Services Group is more favorable than BANCO DO BRASIL/S.

Profitability

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

Net Margins Return on Equity Return on Assets
BANCO DO BRASIL/S 16.28% 14.76% 1.12%
The PNC Financial Services Group 27.32% 11.93% 1.14%

Risk and Volatility

BANCO DO BRASIL/S has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Summary

The PNC Financial Services Group beats BANCO DO BRASIL/S on 13 of the 17 factors compared between the two stocks.

About BANCO DO BRASIL/S

(Get Rating)

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 Brasa­lia, Brazil.

About The PNC Financial Services Group

(Get Rating)

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. The company’s Retail Banking segment offers checking, savings, and money market accounts, as well as certificates of deposit; residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans, and personal and small business loans and lines of credit; and brokerage, insurance, and investment and cash management services. This segment serves consumer and small business customers through a network of branches, ATMs, call centers, and online and mobile banking channels. Its Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services, and access to online/mobile information management and reporting; foreign exchange, derivatives, fixed income, securities underwriting, loan syndications, and mergers and acquisitions and equity capital markets advisory related services; and commercial loan servicing and technology solutions. It serves mid-sized and large corporations, and government and not-for-profit entities. The company’s Asset Management Group segment offers investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration services for high net worth and ultra high net worth individuals, and their families; and multi-generational family planning services for ultra high net worth individuals and their families. It also provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services for institutional clients. The company has 2,591 branches and 9,502 ATMs. The company was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.

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