BCS vs. RY, MUFG, HDB, TD, IBN, SMFG, SAN, BMO, BBVA, and ING
Should you be buying Barclays stock or one of its competitors? The main competitors of Barclays include Royal Bank of Canada (RY), Mitsubishi UFJ Financial Group (MUFG), HDFC Bank (HDB), Toronto-Dominion Bank (TD), ICICI Bank (IBN), Sumitomo Mitsui Financial Group (SMFG), Banco Santander (SAN), Bank of Montreal (BMO), Banco Bilbao Vizcaya Argentaria (BBVA), and ING Groep (ING). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Barclays (NYSE:BCS) and Royal Bank of Canada (NYSE:RY) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, community ranking, analyst recommendations, earnings, media sentiment, risk, institutional ownership, valuation and profitability.
Barclays has a net margin of 17.21% compared to Royal Bank of Canada's net margin of 12.12%. Royal Bank of Canada's return on equity of 14.98% beat Barclays' return on equity.
Royal Bank of Canada has a consensus price target of $137.67, indicating a potential upside of 25.99%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, analysts plainly believe Royal Bank of Canada is more favorable than Barclays.
3.4% of Barclays shares are held by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are held by institutional investors. 0.0% of Barclays shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Barclays has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Royal Bank of Canada has higher revenue and earnings than Barclays. Barclays is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
Barclays received 635 more outperform votes than Royal Bank of Canada when rated by MarketBeat users. Likewise, 68.02% of users gave Barclays an outperform vote while only 55.73% of users gave Royal Bank of Canada an outperform vote.
In the previous week, Royal Bank of Canada had 12 more articles in the media than Barclays. MarketBeat recorded 19 mentions for Royal Bank of Canada and 7 mentions for Barclays. Royal Bank of Canada's average media sentiment score of 1.20 beat Barclays' score of 0.48 indicating that Royal Bank of Canada is being referred to more favorably in the news media.
Barclays pays an annual dividend of $0.52 per share and has a dividend yield of 4.6%. Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.7%. Barclays pays out 38.8% of its earnings in the form of a dividend. Royal Bank of Canada pays out 50.6% 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. Barclays is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Royal Bank of Canada beats Barclays on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BCS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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