International Bancshares (NASDAQ:IBOC – Get Free Report) and Barclays (NYSE:BCS – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Profitability
This table compares International Bancshares and Barclays’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Bancshares | 38.83% | 12.67% | 2.47% |
| Barclays | 22.74% | 9.01% | 0.43% |
Insider & Institutional Ownership
65.9% of International Bancshares shares are held by institutional investors. Comparatively, 3.4% of Barclays shares are held by institutional investors. 13.1% of International Bancshares shares are held by company insiders. Comparatively, 0.0% of Barclays shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.2%. Barclays pays an annual dividend of $0.61 per share and has a dividend yield of 2.8%. International Bancshares pays out 22.0% of its earnings in the form of a dividend. Barclays pays out 21.9% 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. International Bancshares has raised its dividend for 16 consecutive years. Barclays is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares International Bancshares and Barclays”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Bancshares | $859.07 million | 4.86 | $412.29 million | $6.63 | 10.13 |
| Barclays | $38.42 billion | 1.89 | $9.46 billion | $2.78 | 7.82 |
Barclays has higher revenue and earnings than International Bancshares. Barclays is trading at a lower price-to-earnings ratio than International Bancshares, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
International Bancshares has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Barclays has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for International Bancshares and Barclays, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Bancshares | 0 | 0 | 1 | 0 | 3.00 |
| Barclays | 0 | 6 | 4 | 0 | 2.40 |
International Bancshares currently has a consensus target price of $85.00, suggesting a potential upside of 26.56%. Given International Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe International Bancshares is more favorable than Barclays.
Summary
International Bancshares beats Barclays on 11 of the 17 factors compared between the two stocks.
About International Bancshares
International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.
About Barclays
Barclays PLC provides various financial services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International division segments. It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. In addition, the company engages in securities dealing activities. 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.
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