Barclays (NYSE:BCS) and ERSTE GRP BK A/S (OTCMKTS:EBKDY) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Valuation & Earnings
This table compares Barclays and ERSTE GRP BK A/S’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Barclays||$27.15 billion||1.28||-$1.65 billion||$0.83||9.77|
|ERSTE GRP BK A/S||$9.04 billion||1.64||$1.49 billion||$1.66||10.41|
ERSTE GRP BK A/S has lower revenue, but higher earnings than Barclays. Barclays is trading at a lower price-to-earnings ratio than ERSTE GRP BK A/S, indicating that it is currently the more affordable of the two stocks.
Barclays pays an annual dividend of $0.25 per share and has a dividend yield of 3.1%. ERSTE GRP BK A/S pays an annual dividend of $0.68 per share and has a dividend yield of 3.9%. Barclays pays out 30.1% of its earnings in the form of a dividend. ERSTE GRP BK A/S pays out 41.0% 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.
Insider and Institutional Ownership
3.2% of Barclays shares are held by institutional investors. Comparatively, 0.4% of ERSTE GRP BK A/S shares are held by institutional investors. 0.0% of Barclays shares are held by company 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.
This table compares Barclays and ERSTE GRP BK A/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ERSTE GRP BK A/S||18.14%||8.38%||0.67%|
This is a breakdown of recent ratings for Barclays and ERSTE GRP BK A/S, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ERSTE GRP BK A/S||0||0||0||0||N/A|
Risk & Volatility
Barclays has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, ERSTE GRP BK A/S has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
ERSTE GRP BK A/S beats Barclays on 9 of the 14 factors compared between the two stocks.
Barclays Company Profile
Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, other European countries, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International divisions. It offers personal and business banking services; credit and debit cards; international banking; and private banking services, which include investment, wealth planning, and credit and specialist solutions to high net worth and ultra-high net worth clients, and family offices. The company also provides investment banking services, which include financial advisory, capital raising, wealth and investment management, and financing and risk management services to corporations, governments, and financial institutions. In addition, it engages in securities dealing activities; and issues credit cards. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.
ERSTE GRP BK A/S Company Profile
Erste Group Bank AG provides a range of banking and other financial services to the retail and corporate customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management and Local Corporate Center, Savings Banks, Group Corporate Center, and Intragroup Elimination segments. It offers savings and current accounts, mortgage and consumer loans, working capital finance, accounts receivable purchasing, structured trade finance, and supply chain finance services; loan syndication services; letters of credit, guarantees, investment finance, acquisition and leveraged finance, commercial real estate finance, buyer's credit, and revolving export credit lines; liquidity management; and hedging and documentary collection services. The company also provides private banking, asset management, investment banking, securities and derivatives trading, portfolio management, project finance, foreign trade financing, corporate finance, capital market and money market, foreign exchange trading, and leasing and factoring services; phone, online, and mobile banking services; and leasing, insurance, investment, and building society products, as well as credit cards. In addition, it offers real estate development and lending; advisory services related to acquisition, divestment, and merger, as well as risk management; analysis services for stock, bond, and commodity markets; and custody and brokerage services. The company operates through 2,565 branches in seven countries. Erste Group Bank AG was founded in 1819 and is headquartered in Vienna, Austria.
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