Société Générale Société anonyme (OTCMKTS:SCGLY) and Barclays (NYSE:BCS) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Volatility & Risk
Société Générale Société anonyme has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Barclays has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.
Société Générale Société anonyme pays an annual dividend of $0.10 per share and has a dividend yield of 1.6%. Barclays pays an annual dividend of $0.22 per share and has a dividend yield of 2.2%. Société Générale Société anonyme pays out 45.5% of its earnings in the form of a dividend. Barclays pays out 44.9% 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. Barclays is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Société Générale Société anonyme and Barclays’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Société Générale Société anonyme||$25.26 billion||1.06||-$294.71 million||$0.22||28.41|
|Barclays||$27.95 billion||1.53||$3.06 billion||$0.49||20.55|
Barclays has higher revenue and earnings than Société Générale Société anonyme. Barclays is trading at a lower price-to-earnings ratio than Société Générale Société anonyme, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Société Générale Société anonyme and Barclays, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Société Générale Société anonyme||0||4||8||0||2.67|
Société Générale Société anonyme presently has a consensus price target of $32.86, indicating a potential upside of 425.71%. Given Société Générale Société anonyme’s stronger consensus rating and higher probable upside, analysts clearly believe Société Générale Société anonyme is more favorable than Barclays.
Insider and Institutional Ownership
0.1% of Société Générale Société anonyme 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, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Société Générale Société anonyme and Barclays’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Société Générale Société anonyme||14.86%||5.09%||0.23%|
Barclays beats Société Générale Société anonyme on 13 of the 16 factors compared between the two stocks.
About Société Générale Société anonyme
Société Générale SA provides banking and financial services. It operates through the following business segments: French Retail Banking, International Retail Banking & Financial Services, and Global Banking & Investor Solutions. The French Retail Banking segment includes the domestic networks Societe Generale, Crédit du Nord and Boursorama. The International Retail Banking & Financial Services segment consists of international retail banking including consumer finance activities; financial services to corporate; and insurance activities. The Global Banking and Investor Solutions segment comprises of global markets and investor services; financing and advisory; asset and wealth management. The company was founded on May 4, 1864 and is headquartered in Paris, France.
Barclays Plc operates as a bank holding company that engages in the business of providing retail banking, credit cards, corporate and investment banking and wealth management services. The firm operates through two divisions: Barclays UK and Barclays International. The Barclays UK division comprises the U.K. retail banking operations, U.K. consumer credit card business, U.K. wealth management business and corporate banking for smaller businesses. The Barclays International division comprises the corporate banking franchise, the investment bank, the U.S. and international cards business and international wealth management. Barclays was founded on July 20, 1896 and is headquartered in London, the United Kingdom.
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