Head to Head Analysis: Woori Bank (NYSE:WF) vs. Banco Do Brasil (OTCMKTS:BDORY)

Woori Bank (NYSE:WF) and Banco Do Brasil (OTCMKTS:BDORY) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Woori Bank and Banco Do Brasil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woori Bank	0	0	1	0	3.00
Banco Do Brasil	0	2	1	0	2.33

Profitability

This table compares Woori Bank and Banco Do Brasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woori Bank	11.84%	8.30%	0.56%
Banco Do Brasil	4.99%	15.84%	1.21%

Risk & Volatility

Woori Bank has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Banco Do Brasil has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Dividends

Woori Bank pays an annual dividend of $1.35 per share and has a dividend yield of 2.5%. Banco Do Brasil pays an annual dividend of $0.06 per share and has a dividend yield of 1.5%. Woori Bank pays out 17.0% of its earnings in the form of a dividend. Banco Do Brasil pays out 12.2% 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.

Insider & Institutional Ownership

3.4% of Woori Bank shares are owned by institutional investors. Comparatively, 0.0% of Banco Do Brasil shares are owned by institutional investors. 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.

Earnings & Valuation

This table compares Woori Bank and Banco Do Brasil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woori Bank	$19.04 billion	0.70	$2.09 billion	$7.94	6.89
Banco Do Brasil	$55.92 billion	0.40	$6.57 billion	$0.49	7.94

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

Summary

Woori Bank beats Banco Do Brasil on 7 of the 13 factors compared between the two stocks.

About Woori Bank

Woori Financial Group Inc., a financial holding company, operates as a commercial bank that provides a range of financial products and services to individuals, corporations, and small- and medium-sized enterprises in Korea. It operates through Banking, Credit Card, Capital, Investment Banking, and Others segments. The company offers savings, demand, installment, and time deposits; certificates of deposit; repurchase instruments; and working capital, facilities, general purpose household, mortgage, and home equity loans. It also provides debit and credit cards, cash services, card loans, and related services; lease financing; and securities operation, sale of financial instruments, project financing, and other related solutions. In addition, the company offers credit purchase, cash advance, credit card loans, foreign exchange services and dealing, import and export-related services, offshore lending, syndicated loans and foreign currency securities investment, investment trust products, bancassurance, and private equity funds. Further, it is involved in the real estate trust, system software development and maintenance, financing, credit information, securities investment and trading, derivatives trading, trust, asset securitization, investment and international banking, money transfer, and other services. Additionally, the company offers automated telephone, internet, and mobile banking services; and trust management, trustee, and custodian services. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.

About Banco Do Brasil

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.