Comparing Finward Bancorp (NASDAQ:FNWD) & Banco Bradesco (NYSE:BBDO)

Banco Bradesco (NYSE:BBDO) and Finward Bancorp (NASDAQ:FNWD) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Banco Bradesco and Finward Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	2	11	0	2.85
Finward Bancorp	0	1	2	0	2.67

Banco Bradesco currently has a consensus price target of $73.58, suggesting a potential upside of 2,953.25%. Finward Bancorp has a consensus price target of $41.00, suggesting a potential downside of 5.33%. Given Banco Bradesco’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Banco Bradesco is more favorable than Finward Bancorp.

Profitability

This table compares Banco Bradesco and Finward Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	12.58%	15.06%	1.14%
Finward Bancorp	7.52%	4.39%	0.38%

Volatility & Risk

Banco Bradesco has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Finward Bancorp has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Dividends

Banco Bradesco pays an annual dividend of $0.18 per share and has a dividend yield of 7.5%. Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. Banco Bradesco pays out 39.1% of its earnings in the form of a dividend. Finward Bancorp pays out 27.1% 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 and Institutional Ownership

26.6% of Finward Bancorp shares are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by insiders. Comparatively, 13.1% of Finward Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Banco Bradesco and Finward Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$41.79 billion	0.39	$4.24 billion	$0.46	5.24
Finward Bancorp	$101.06 million	1.86	$8.09 million	$1.77	24.47

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

Summary

Banco Bradesco beats Finward Bancorp on 10 of the 16 factors compared between the two stocks.

About Banco Bradesco

Banco Bradesco S.A., together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segments, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; overdraft and agribusiness loans; debit and business cards; financial and security services; consortium products; car, personal accident, dental, travel, and life insurance; investment products; pension products; foreign currency exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.