Critical Comparison: Banco Bradesco (NYSE:BBD) versus HBT Financial (NASDAQ:HBT)

Banco Bradesco (NYSE:BBDGet Free Report) and HBT Financial (NASDAQ:HBTGet Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Banco Bradesco 6.38% 9.06% 0.79%
HBT Financial 24.84% 17.28% 1.57%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Banco Bradesco and HBT Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Bradesco 1 2 1 0 2.00
HBT Financial 0 1 1 0 2.50

Banco Bradesco presently has a consensus target price of $3.23, indicating a potential upside of 3.97%. HBT Financial has a consensus target price of $19.75, indicating a potential upside of 1.70%. Given Banco Bradesco’s higher possible upside, equities analysts plainly believe Banco Bradesco is more favorable than HBT Financial.

Risk & Volatility

Banco Bradesco has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, HBT Financial has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

1.8% of Banco Bradesco shares are owned by institutional investors. Comparatively, 24.2% of HBT Financial shares are owned by institutional investors. 0.3% of Banco Bradesco shares are owned by insiders. Comparatively, 58.6% of HBT Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. HBT Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. Banco Bradesco pays out 14.3% of its earnings in the form of a dividend. HBT Financial pays out 32.7% 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. Banco Bradesco has increased its dividend for 1 consecutive years and HBT Financial has increased its dividend for 3 consecutive years. HBT Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Banco Bradesco and HBT Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Bradesco $103.40 billion 0.32 $4.06 billion $0.21 14.81
HBT Financial $265.05 million 2.32 $65.84 million $2.08 9.34

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

Summary

HBT Financial beats Banco Bradesco on 10 of the 16 factors compared between the two stocks.

About Banco Bradesco

(Get Free Report)

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; debit and business cards; financial and security services; consortium products; auto, personal accident, dental, travel, and life insurance; investment products; pension products; real estate and vehicle auctions; cash management, and foreign trade and exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.

About HBT Financial

(Get Free Report)

HBT Financial, Inc. operates as the bank holding company for Heartland Bank and Trust Company that provides business, commercial, and retail banking products and services to individuals, businesses, and municipal entities in Central and Northeastern Illinois, and Eastern Iowa. The company's deposits accounts consist of noninterest-bearing demand deposits, interest-bearing transaction accounts, money market accounts, savings accounts, certificates of deposits, health savings accounts, and individual retirement accounts. Its loan offering comprises owner and non-owner occupied commercial real estate; construction and land development and multi-family; commercial and industrial; agricultural and farmland; and one-to-four family residential loans, as well as municipal, consumer, and other loans. The company also offers wealth management services, including financial planning to consumers, trusts, and estates; trustee and custodial; investment management; corporate retirement plan consulting and administration; and retail brokerage services. In addition, it provides farmland management, and farmland sales and services; and treasury management services, as well as originates and sells residential mortgage loans. Further, the company offers digital banking services, such as online and mobile banking, and digital payment services, as well as personal financial management tools. The company was formerly known as Heartland Bancorp, Inc. and changed its name to HBT Financial, Inc. in September 2019. HBT Financial, Inc. was founded in 1920 and is headquartered in Bloomington, Illinois.

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