Banco Santander Brasil (NYSE:BSBR) and Barclays (NYSE:BCS) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Dividends
Banco Santander Brasil pays an annual dividend of $0.60 per share and has a dividend yield of 5.4%. Barclays pays an annual dividend of $0.29 per share and has a dividend yield of 3.2%. Banco Santander Brasil pays out 66.7% of its earnings in the form of a dividend. Barclays pays out 25.0% 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. Barclays has increased its dividend for 2 consecutive years.
Profitability
This table compares Banco Santander Brasil and Barclays’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banco Santander Brasil | 15.98% | 15.49% | 2.03% |
| Barclays | 8.14% | 5.11% | 0.28% |
Risk & Volatility
Banco Santander Brasil has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Barclays has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Banco Santander Brasil and Barclays, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Santander Brasil | 0 | 2 | 1 | 0 | 2.33 |
| Barclays | 0 | 1 | 4 | 0 | 2.80 |
Banco Santander Brasil presently has a consensus target price of $12.00, suggesting a potential upside of 8.30%. Given Banco Santander Brasil’s higher possible upside, equities research analysts clearly believe Banco Santander Brasil is more favorable than Barclays.
Earnings & Valuation
This table compares Banco Santander Brasil and Barclays’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco Santander Brasil | $24.16 billion | 1.71 | $3.44 billion | $0.90 | 12.31 |
| Barclays | $28.21 billion | 1.39 | $2.86 billion | $1.16 | 7.86 |
Banco Santander Brasil has higher earnings, but lower revenue than Barclays. Barclays is trading at a lower price-to-earnings ratio than Banco Santander Brasil, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
1.0% of Banco Santander Brasil shares are held by institutional investors. Comparatively, 2.3% of Barclays shares are held by institutional investors. 0.0% of Barclays shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Barclays beats Banco Santander Brasil on 9 of the 17 factors compared between the two stocks.
About Banco Santander Brasil
Banco Santander (Brasil) S.A. provides commercial banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. It operates through two segments, Commercial Banking and Global Wholesale Banking. The company offers checking and savings accounts; priority services, such as withdrawals, debit cards, deposits, and transfers; onshore and offshore financial products and services, investment advice, and asset management services; consumer credit for purchasing motor vehicles, and other goods and services; local loans, commercial finance, trade finance, guarantees, structured loans, and cash management and funding solutions, as well as Banco Nacional de Desenvolvimento Econômico e Social on-lending transfer services; payroll, mortgage, and agribusiness loans, as well as microcredit; investment products; and credit cards and foreign exchange services. It also provides funding and financial advisory services related to projects, and origination and distribution of fixed-income securities in the debt capital markets, as well as financing for acquisitions and syndicated loans, other structured financing arrangements, and subordinated debt and energy efficiency transactions. In addition, the company offers advisory services in mergers and acquisitions, and equity capital markets transactions; stock brokerage and advisory, equity, and equity research services; derivative and investment products; and digital payment solutions. Further, it operates Webmotors, an online automotive classified. The company provides its products and services through branches, mini-branches, and ATMs; call centers; and digital channels, such as Internet banking and mobile banking. Banco Santander (Brasil) S.A. was incorporated in 1985 and is headquartered in São Paulo, Brazil.
About Barclays
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.
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