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Analyzing Banco Santander (Brasil) (NYSE:BSBR) and Banco Santander (NYSE:SAN)

Defense World ·  Sep 2, 2022 01:42

Banco Santander (Brasil) (NYSE:BSBR – Get Rating) and Banco Santander (NYSE:SAN – Get Rating) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Dividends

Banco Santander (Brasil) pays an annual dividend of $0.30 per share and has a dividend yield of 5.3%. Banco Santander pays an annual dividend of $0.07 per share and has a dividend yield of 2.9%. Banco Santander (Brasil) pays out 75.0% of its earnings in the form of a dividend. Banco Santander pays out 12.1% 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.

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Analyst Ratings

This is a summary of recent recommendations for Banco Santander (Brasil) and Banco Santander, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Santander (Brasil) 0 3 0 0 2.00
Banco Santander 0 7 6 0 2.46
Banco Santander (Brasil) presently has a consensus price target of $6.00, suggesting a potential upside of 5.63%. Banco Santander has a consensus price target of $3.78, suggesting a potential upside of 58.96%. Given Banco Santander's stronger consensus rating and higher probable upside, analysts plainly believe Banco Santander is more favorable than Banco Santander (Brasil).

Profitability

This table compares Banco Santander (Brasil) and Banco Santander's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Santander (Brasil) 12.01% 12.41% 1.40%
Banco Santander 19.13% 9.51% 0.56%

Valuation & Earnings

This table compares Banco Santander (Brasil) and Banco Santander's top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Santander (Brasil) $16.79 billion 1.26 $2.88 billion $0.40 14.20
Banco Santander $54.90 billion 0.73 $9.61 billion $0.58 4.10

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

Insider & Institutional Ownership

14.5% of Banco Santander (Brasil) shares are owned by institutional investors. Comparatively, 2.1% of Banco Santander shares are owned by institutional investors. 0.1% of Banco Santander (Brasil) shares are owned by company insiders. Comparatively, 9.5% of Banco Santander shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Banco Santander (Brasil) has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Banco Santander has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Banco Santander beats Banco Santander (Brasil) on 10 of the 16 factors compared between the two stocks.

About Banco Santander (Brasil)

(Get Rating)

Banco Santander (Brasil) S.A., together with its subsidiaries, provides various banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates in two segments, Commercial Banking and Global Wholesale Banking. It offers deposits and other bank funding instruments; debit and credit cards; digital prepaid solutions; payment platform; loyalty programs; employee benefit vouchers; payroll loans; digital lending and online debt renegotiation services; mortgages; home equity financing products; consumer credit; and local loans, commercial and trade finance, guarantees, structured loans, and cash management and funding solutions, as well as on-lending transfer services. It also provides funding and financial advisory services related to projects, origination and distribution of fixed-income securities in the debt capital markets, financing of acquisitions and syndicated loans, other structured financing arrangements, and subordinated debt and energy efficiency transactions; advisory services for mergers and acquisitions, and equity capital markets transactions; and stock brokerage and advisory, equity, and equity research services. In addition, the company structures and offers foreign exchange, derivative, and investment products for institutional investors, and corporate and retail customers; and provides market making services. Further, it offers instant payment services; range of products and services focused on the agribusiness sector; microfinance services; and online automotive listing and digital car insurance solutions, as well as digital trading platform. Additionally, it provides its financial services and products to its customers through multichannel distribution network comprising branches, mini-branches, ATMs, call centers, Internet banking, and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil.

About Banco Santander

(Get Rating)

Banco Santander, S.A. provides various retail and commercial banking products and services to individuals, small and medium-sized enterprises, and large companies worldwide. It offers demand and time deposits, and current and savings accounts; mortgages, consumer finance, syndicated corporate loans, structured financing, cash management, export and agency finance, trade and working capital solutions, and corporate finance; and insurance products. The company also provides cash, asset, and wealth management; and private banking services. In addition, it is involved in the corporate banking; treasury, risk hedging, foreign trade, confirming, custody, and investment banking activities. The company operates through a network of 9,879 branches. The company was formerly known as Banco Santander Central Hispano S.A. and changed its name to Banco Santander, S.A. in June 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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