Banco Comercial Portugues (OTCMKTS:BPCGY) and Truist Financial (NYSE:TFC) Head-To-Head Analysis

Banco Comercial Portugues (OTCMKTS:BPCGY) and Truist Financial (NYSE:TFC) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Banco Comercial Portugues and Truist Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Comercial Portugues	0	1	0	1	3.00
Truist Financial	2	8	8	0	2.33

Truist Financial has a consensus target price of $54.97, indicating a potential upside of 18.65%. Given Truist Financial’s higher probable upside, analysts clearly believe Truist Financial is more favorable than Banco Comercial Portugues.

Dividends

Banco Comercial Portugues pays an annual dividend of $0.18 per share and has a dividend yield of 1.3%. Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.5%. Banco Comercial Portugues pays out 19.8% of its earnings in the form of a dividend. Truist Financial pays out 47.7% 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.

Risk and Volatility

Banco Comercial Portugues has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Truist Financial has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

71.3% of Truist Financial shares are owned by institutional investors. 0.2% of Truist Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Banco Comercial Portugues and Truist Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Comercial Portugues	$5.82 billion	3.42	$980.79 million	$0.91	14.77
Truist Financial	$30.44 billion	1.86	$5.31 billion	$4.36	10.63

Truist Financial has higher revenue and earnings than Banco Comercial Portugues. Truist Financial is trading at a lower price-to-earnings ratio than Banco Comercial Portugues, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Banco Comercial Portugues and Truist Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Comercial Portugues	N/A	N/A	N/A
Truist Financial	19.13%	10.06%	1.09%

Summary

Truist Financial beats Banco Comercial Portugues on 12 of the 17 factors compared between the two stocks.

About Banco Comercial Portugues

Banco Comercial Português, S.A., a private sector bank, engages in the provision of various banking and financial products and services in Portugal and internationally. It operates through Retail Banking; Companies, Corporate & Investment Banking; Private Banking; Foreign Business; and Other segments. It offers a range of financial products and services, including current accounts, payment systems, savings and investment products, private banking, asset management, and investment banking services, such as mortgage loans, personal loans, commercial banking, leasing, factoring and insurance, and others. The company is also involved in the provision of investment fund and real estate management, e-commerce, web portal, real estate investment fund, trade finance, trust, consulting, brokerage, marketing, and real estate services, as well as internet, telephone, and mobile banking services. Banco Comercial Português, S.A. was incorporated in 1985 and is based in Porto, Portugal.

About Truist Financial

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.