Banco Do Brasil (OTCMKTS:BDORY) and NatWest Group (NYSE:NWG) Head-To-Head Analysis

Banco Do Brasil (OTCMKTS:BDORY) and NatWest Group (NYSE:NWG) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Banco Do Brasil and NatWest Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Do Brasil	2	1	0	0	1.33
NatWest Group	0	3	4	1	2.75

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Do Brasil	3.14%	8.88%	0.67%
NatWest Group	20.10%	14.01%	0.82%

Dividends

Banco Do Brasil pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. NatWest Group pays an annual dividend of $0.63 per share and has a dividend yield of 3.7%. Banco Do Brasil pays out 2.5% of its earnings in the form of a dividend. NatWest Group pays out 31.3% 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 & Volatility

Banco Do Brasil has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, NatWest Group has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Banco Do Brasil shares are owned by institutional investors. Comparatively, 1.3% of NatWest Group shares are owned by institutional investors. 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Do Brasil	$66.83 billion	0.41	$2.45 billion	$0.40	12.02
NatWest Group	$38.91 billion	1.75	$7.69 billion	$2.01	8.53

NatWest Group has lower revenue, but higher earnings than Banco Do Brasil. NatWest Group 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

NatWest Group beats Banco Do Brasil on 12 of the 15 factors compared between the two stocks.

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.

About NatWest Group

NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Private Banking, and Commercial & Institutional segments. The Retail Banking segment offers a range of banking products and related financial services, such as current accounts, mortgages, personal unsecured lending, and personal deposits, as well as mobile and online banking services. The Private Banking segment provides private banking and wealth management products for high-net-worth individuals and their business interests. The Commercial & Institutional segment offers banking and financial solutions to large corporate organisations, multi-nationals, and financial institutions. The company was formerly known as The Royal Bank of Scotland Group plc and changed its name to NatWest Group plc in July 2020. NatWest Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.