International Flavors & Fragrances (NYSE:IFF) and Banco Bradesco (NYSE:BAK) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
This is a summary of recent ratings and price targets for International Flavors & Fragrances and Banco Bradesco, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|International Flavors & Fragrances||4||5||5||0||2.07|
This table compares International Flavors & Fragrances and Banco Bradesco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|International Flavors & Fragrances||7.59%||10.39%||4.85%|
Valuation & Earnings
This table compares International Flavors & Fragrances and Banco Bradesco’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|International Flavors & Fragrances||$3.98 billion||3.56||$337.30 million||$6.28||21.11|
|Banco Bradesco||$18.79 billion||0.31||$773.65 million||$1.97||7.39|
Banco Bradesco has higher revenue and earnings than International Flavors & Fragrances. Banco Bradesco is trading at a lower price-to-earnings ratio than International Flavors & Fragrances, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
International Flavors & Fragrances has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.
International Flavors & Fragrances pays an annual dividend of $3.00 per share and has a dividend yield of 2.3%. Banco Bradesco pays an annual dividend of $0.37 per share and has a dividend yield of 2.5%. International Flavors & Fragrances pays out 47.8% of its earnings in the form of a dividend. Banco Bradesco pays out 18.8% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
93.8% of International Flavors & Fragrances shares are held by institutional investors. Comparatively, 0.1% of Banco Bradesco shares are held by institutional investors. 0.4% of International Flavors & Fragrances shares are held by company insiders. Comparatively, 0.0% of Banco Bradesco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
International Flavors & Fragrances beats Banco Bradesco on 9 of the 15 factors compared between the two stocks.
International Flavors & Fragrances Company Profile
International Flavors & Fragrances Inc., together with its subsidiaries, manufactures flavors and fragrances for use in various consumer products. It operates through three segments: Taste, Scent, and Frutarom. The Taste segment offers flavor compounds primarily to the food and beverage industries for use in consumer products, such as prepared foods, beverages, dairy, food, and sweet products. The Scent segment provides fragrance compounds, which include fine fragrances comprising perfumes and colognes, as well as consumer fragrances for personal care, household products, and beauty care; fragrance ingredients comprising synthetic and natural ingredients that could be combined with other materials to create fragrance and consumer compounds; and cosmetic active ingredients consisting of active and functional ingredients, botanicals, and delivery systems to support its customers' cosmetic and personal care product lines. This segment serves perfume and toiletries manufacturers in the cosmetics industry; and manufacturers of soaps, detergents, fabric care, household cleaners, and air fresheners in the household products industry. The Frutarom segment creates and manufactures a naturals-focused suite of flavor compounds, functional foods, and specialty fine ingredients to small, local, and regional customers. The company has operations in Europe, Africa, the Middle East, Greater Asia, North America, and Latin America. International Flavors & Fragrances Inc. was founded in 1833 and is headquartered in New York, New York.
Banco Bradesco Company Profile
Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through five segments: Chemicals, Polyolefins, United States and Europe, Mexico, Vinyls. The Chemicals segment produces and sells ethylene, propylene butadiene, toluene, xylene, cumene, and benzene, as well as gasoline, diesel and liquefied petroleum gas, and other petroleum derivatives; and supplies electric energy, steam, compressed air, and other inputs to second-generation producers. The Polyolefins segment produces and sells polyethylene and polypropylene. The United States and Europe segment produces and sells polypropylene in the United States and Europe. The Mexico segment produces and sells ethylene, high-density polyethylene, and low-density polyethylene in Mexico. The Vinyls segment produces and sells polyvinyl chloride and caustic soda. The company also manufactures, trades in, imports, and exports chemicals, petrochemicals, and fuels; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is based in São Paulo, Brazil.
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