Head-To-Head Comparison: Farmers & Merchants Bancorp (OTCMKTS:FMCB) vs. BANCO DO BRASIL/S (OTCMKTS:BDORY)

Farmers & Merchants Bancorp (OTCMKTS:FMCB) and BANCO DO BRASIL/S (OTCMKTS:BDORY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings for Farmers & Merchants Bancorp and BANCO DO BRASIL/S, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers & Merchants Bancorp	0	0	0	0	0.00
BANCO DO BRASIL/S	0	2	0	0	2.00

Dividends

Farmers & Merchants Bancorp pays an annual dividend of $18.60 per share and has a dividend yield of 1.8%. BANCO DO BRASIL/S pays an annual dividend of $0.09 per share and has a dividend yield of 2.3%. Farmers & Merchants Bancorp pays out 15.7% of its earnings in the form of a dividend. BANCO DO BRASIL/S pays out 8.0% 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. BANCO DO BRASIL/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Farmers & Merchants Bancorp has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, BANCO DO BRASIL/S has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Insider & Institutional Ownership

5.6% of Farmers & Merchants Bancorp shares are owned by institutional investors. Comparatively, 0.0% of BANCO DO BRASIL/S shares are owned by institutional investors. 8.0% of Farmers & Merchants Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Farmers & Merchants Bancorp and BANCO DO BRASIL/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers & Merchants Bancorp	30.25%	15.35%	1.62%
BANCO DO BRASIL/S	12.34%	18.68%	1.46%

Valuation and Earnings

This table compares Farmers & Merchants Bancorp and BANCO DO BRASIL/S”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers & Merchants Bancorp	$268.67 million	2.76	$88.31 million	$118.46	8.94
BANCO DO BRASIL/S	$53.93 billion	0.41	$6.77 billion	$1.13	3.45

BANCO DO BRASIL/S has higher revenue and earnings than Farmers & Merchants Bancorp. BANCO DO BRASIL/S is trading at a lower price-to-earnings ratio than Farmers & Merchants Bancorp, indicating that it is currently the more affordable of the two stocks.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals. The company accepts various deposit products, including checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also offers range of lending products comprising commercial and residential real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products, including term loans, lines of credit and other working capital financing, and letters of credit; and financing products, such as automobile financing, home improvement, and home equity lines of credit. In addition, the company provides various specialized services consisting of credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers through domestic and international wire and automated clearinghouse; online banking services; and investment products, such as mutual funds and annuities. The company was founded in 1916 and is headquartered in Lodi, California.

About BANCO DO BRASIL/S

Banco do Brasil S.A. provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company's Banking segment offers various products and services, including deposits, loans, and services to retail, wholesale, and public sector markets, as well as to micro-entrepreneurs and the low income population. Its Investments segment engages in the intermediation and distribution of debts in the primary and secondary markets; equity investment activities; and rendering of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities, as well as the management of portfolios, and investment funds and clubs. Its Insurance, Pension and Capitalization segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Payment Methods segment is involved in the funding, transmission, processing, and settlement of transactions through electronic means. Its Other segment engages in the provision of credit recovery and consortium administration services; development, manufacturing, leasing, and integration of digital electronic systems and equipment, peripherals, programs, inputs, and computing supplies; intermediation of air tickets; and lodging and organization of events. Banco do Brasil S.A. was founded in 1808 and is headquartered in Brasa­lia, Brazil.