Cramer's 'Mad Money' Recap: Bank on Banco Bradesco

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Brazil's banks should offer solace to investors who are turned off by America's weak consumers, Jim Cramer told viewers of his "Mad Money" TV show on Tuesday.

Calling Brazil's growing economy "investor nirvana," Cramer pointed out that Latin America provides an important market to American companies that are suffering at home.

Whirlpool (WHR Quote) and Colgate (CL Quote) can both attribute today's earnings success to Latin American exposure, Cramer said.

Brazil is particularly good for investors because its consumers are growing richer. The Fed also has a role in a Brazil play. Lower interest rates are great for Brazil's banks, because "credit cards and mortgages are a recent discovery" for the country," Cramer said. Lower interest rates in America mean the Brazilian market will open up as well.

Additionally, global money managers want to buy banks, but takeover targets are scarce. Brazil offers two possible candidates: Banco Bradesco (BBD Quote) and Banco Itau (ITU Quote).

Banco Bradesco is the best way to play the Brazilian utopia, Cramer said. BBD has five advantages over ITU.

First, BBD is the larger of the two banks. Second, it has fewer bad loans as a percentage of total loans. Third, BBD is the market leader in asset management insurance and pension plans. Fourth, BBD has 20% of its ATMs and branches in the wealthier northern half of Brazil compared to ITU's 6%.

And finally, BBD trades at 14 times earnings, whereas ITU trades at 16 times earnings. If BBD's price-over-earnings ratio were to rise to match ITU, the share price would rise from $32 to $40.

Banco Bradesco handily beats Banco Itau as a play on Brazil's emerging market, Cramer said.