Bank of South Carolina (NASDAQ:BKSC) versus Banco Bradesco (NYSE:BBDO) Critical Analysis

Profitability

This table compares Bank of South Carolina and Banco Bradesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of South Carolina	22.15%	13.18%	1.03%
Banco Bradesco	7.07%	10.01%	0.84%

Dividends

Bank of South Carolina pays an annual dividend of $0.76 per share and has a dividend yield of 5.8%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.4%. Bank of South Carolina pays out 66.7% of its earnings in the form of a dividend. Banco Bradesco pays out 13.0% 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.

Institutional and Insider Ownership

0.2% of Bank of South Carolina shares are held by institutional investors. 29.8% of Bank of South Carolina shares are held by insiders. Comparatively, 0.3% of Banco Bradesco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Bank of South Carolina and Banco Bradesco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of South Carolina	$26.08 million	2.72	$5.49 million	$1.14	11.43
Banco Bradesco	$39.41 billion	N/A	$2.85 billion	$0.23	9.04

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

Risk and Volatility

Bank of South Carolina has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Summary

Bank of South Carolina beats Banco Bradesco on 8 of the 12 factors compared between the two stocks.

About Bank of South Carolina

Bank of South Carolina Corporation operates as a bank holding company for The Bank of South Carolina that provides a range of financial products and services primarily in Charleston, Berkeley, and Dorchester counties of South Carolina. Its deposits include non-interest-bearing demand accounts, NOW accounts, money market accounts, time deposits, and savings accounts, as well as certificates of deposit. The company offers secured and unsecured commercial loans, commercial real estate construction loans, consumer construction loans, home equity lines of credit, and mortgage originations, as well as paycheck protection program loans. It operates five banking house locations. The company was founded in 1986 and is headquartered in Charleston, South Carolina.

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.