Analyzing Barclays (NYSE:BCS) and Truist Financial (NYSE:TFC)

Barclays (NYSE:BCS) and Truist Financial (NYSE:TFC) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Dividends

Barclays pays an annual dividend of $0.61 per share and has a dividend yield of 2.7%. Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.3%. Barclays pays out 21.9% of its earnings in the form of a dividend. Truist Financial pays out 53.6% 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Barclays and Truist Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barclays	0	6	4	0	2.40
Truist Financial	2	10	7	0	2.26

Truist Financial has a consensus target price of $53.76, indicating a potential upside of 10.64%. Given Truist Financial’s higher possible upside, analysts plainly believe Truist Financial is more favorable than Barclays.

Risk and Volatility

Barclays has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Truist Financial has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Institutional and Insider Ownership

3.4% of Barclays shares are owned by institutional investors. Comparatively, 71.3% of Truist Financial shares are owned by institutional investors. 0.0% of Barclays shares are owned by company insiders. Comparatively, 0.2% of Truist Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Barclays and Truist Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barclays	N/A	N/A	N/A
Truist Financial	N/A	N/A	N/A

Earnings & Valuation

This table compares Barclays and Truist Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barclays	$30.94 billion	2.42	$9.29 billion	$2.78	8.07
Truist Financial	$19.41 billion	3.06	$4.74 billion	$3.88	12.52

Barclays has higher revenue and earnings than Truist Financial. Barclays is trading at a lower price-to-earnings ratio than Truist Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Truist Financial beats Barclays on 8 of the 13 factors compared between the two stocks.

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.

About Truist Financial

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.