Financial Survey: Barclays (BCS) versus Bryn Mawr Bank (BMTC)

Barclays (NYSE: BCS) and Bryn Mawr Bank (NASDAQ:BMTC) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Barclays and Bryn Mawr Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barclays $29.09 billion 1.62 $2.82 billion $0.62 17.82
Bryn Mawr Bank $171.03 million 5.13 $36.03 million $2.25 19.56

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

Profitability

This table compares Barclays and Bryn Mawr Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barclays -1.86% 3.08% 0.18%
Bryn Mawr Bank 21.29% 10.15% 1.17%

Institutional & Insider Ownership

2.5% of Barclays shares are owned by institutional investors. Comparatively, 69.8% of Bryn Mawr Bank shares are owned by institutional investors. 0.0% of Barclays shares are owned by company insiders. Comparatively, 2.3% of Bryn Mawr Bank shares are owned by company 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.

Dividends

Barclays pays an annual dividend of $0.15 per share and has a dividend yield of 1.4%. Bryn Mawr Bank pays an annual dividend of $0.88 per share and has a dividend yield of 2.0%. Barclays pays out 24.2% of its earnings in the form of a dividend. Bryn Mawr Bank pays out 39.1% 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 ratings for Barclays and Bryn Mawr Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barclays 2 6 5 0 2.23
Bryn Mawr Bank 0 1 2 0 2.67

Barclays currently has a consensus price target of $11.50, suggesting a potential upside of 4.07%. Bryn Mawr Bank has a consensus price target of $48.50, suggesting a potential upside of 10.23%. Given Bryn Mawr Bank’s stronger consensus rating and higher possible upside, analysts clearly believe Bryn Mawr Bank is more favorable than Barclays.

Volatility and Risk

Barclays has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Bryn Mawr Bank has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Summary

Bryn Mawr Bank beats Barclays on 11 of the 16 factors compared between the two stocks.

About Barclays

Barclays PLC, is a global financial services holding company. The Company is engaged in credit cards, wholesale banking, investment banking, wealth management and investment management services. The Company’s segments include Barclays UK and Barclays International. The Barclays UK segment includes the local consumer, small business, the United Kingdom wealth and credit cards business.

About Bryn Mawr Bank

Bryn Mawr Bank Corporation is the bank holding company of the Bryn Mawr Trust Company (the Bank). The Company and its subsidiaries offer a range of personal and business banking services, consumer and commercial loans, equipment leasing, mortgages, insurance and wealth management services, including investment management, trust and estate administration, retirement planning, custody services, and tax planning and preparation from various location across Montgomery, Delaware, Chester, Philadelphia and Dauphin counties of Pennsylvania, and New Castle county in Delaware. The Company’s segments include Banking and Wealth Management. The Banking segment consists of commercial and retail banking. The Wealth Management segment’s activities include trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and individual retirement accounts (IRA) administration, estate settlement, tax services and brokerage.

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