Head to Head Review: First Foundation (NASDAQ:FFWM) vs. Banco Bradesco (NYSE:BBDO)

Banco Bradesco (NYSE:BBDO) and First Foundation (NASDAQ:FFWM) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Earnings and Valuation

This table compares Banco Bradesco and First Foundation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bradesco	$39.41 billion	N/A	$2.85 billion	$0.26	7.27
First Foundation	$623.04 million	1.03	-$199.06 million	($1.12)	-6.95

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

Volatility and Risk

Banco Bradesco has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, First Foundation has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Insider and Institutional Ownership

73.1% of First Foundation shares are held by institutional investors. 0.3% of Banco Bradesco shares are held by company insiders. Comparatively, 7.1% of First Foundation shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banco Bradesco	7.43%	10.17%	0.86%
First Foundation	-11.52%	1.06%	0.07%

Analyst Ratings

This is a summary of current ratings for Banco Bradesco and First Foundation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bradesco	0	0	0	0	0.00
First Foundation	0	4	1	0	2.20

First Foundation has a consensus price target of $7.80, indicating a potential upside of 0.26%. Given First Foundation’s stronger consensus rating and higher probable upside, analysts plainly believe First Foundation is more favorable than Banco Bradesco.

Summary

Banco Bradesco beats First Foundation on 7 of the 13 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 First Foundation

First Foundation Inc., through its subsidiaries, provides banking services, investment advisory, wealth management, and trust services to individuals, businesses, and other organizations in the United States. The company operates in two segments, Banking and Wealth Management. It offers a range of deposit products, including personal and business checking accounts, savings accounts, interest-bearing demand deposit accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, commercial term loans, and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits. The company also provides various specialized services comprising trust services, online and mobile banking, remote deposit capture services, merchant credit card services, ATM cards, Visa debit cards, and business sweep accounts, as well as insurance brokerage services and equipment financing solutions. In addition, it offers investment management and financial planning services; financial, investment, and economic advisory and related services; and treasury management services, such as bill pay, check/payee/ACH positive pay, wire origination, internal and external transfers, account reconciliation reporting, mobile deposit, lockbox, cash vault services and merchant processing. Further, the company provides support services, including the processing and transmission of financial and economic data for charitable organizations. It operates through a network of branch offices and loan production offices. The company was founded in 1985 and is headquartered in Dallas, Texas.