Comparing Bank of N.T. Butterfield & Son (NYSE:NTB) and Barclays (NYSE:BCS)

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Bank of N.T. Butterfield & Son (NYSE:NTB) and Barclays (NYSE:BCS) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bank of N.T. Butterfield & Son and Barclays, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of N.T. Butterfield & Son 0 2 2 0 2.50
Barclays 0 5 1 0 2.17

Bank of N.T. Butterfield & Son currently has a consensus price target of $40.75, indicating a potential upside of 27.54%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Bank of N.T. Butterfield & Son is more favorable than Barclays.

Insider and Institutional Ownership

71.5% of Bank of N.T. Butterfield & Son shares are held by institutional investors. Comparatively, 2.5% 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 company is poised for long-term growth.

Dividends

Barclays pays an annual dividend of $0.29 per share and has a dividend yield of 3.9%. Bank of N.T. Butterfield & Son does not pay a dividend. Barclays pays out 25.0% of its earnings in the form of a dividend.

Profitability

This table compares Bank of N.T. Butterfield & Son and Barclays’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of N.T. Butterfield & Son 34.60% 22.69% 1.84%
Barclays 14.72% 5.03% 0.28%

Earnings & Valuation

This table compares Bank of N.T. Butterfield & Son and Barclays’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of N.T. Butterfield & Son $517.80 million 3.37 $195.18 million $3.53 9.05
Barclays $28.21 billion 1.12 $2.86 billion $1.16 6.34

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

Risk and Volatility

Bank of N.T. Butterfield & Son has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Barclays has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Summary

Bank of N.T. Butterfield & Son beats Barclays on 12 of the 16 factors compared between the two stocks.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and non-interest bearing deposits, as well as certificates of deposit. The company's lending portfolio includes residential mortgage lending, automobile financing, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans. It also offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. In addition, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, private banking, administered banking services, and fiduciary services. Further, it offers debit cards; automated teller machines; personal and business deposit, merchant acquiring, and mobile/online banking services. The company operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Switzerland, Singapore, Mauritius, and Canada, as well as through four branch locations in Bermuda and three branch locations in the Cayman Islands. The Bank of N.T. Butterfield & Son Limited was founded in 1858 and is headquartered in Hamilton, Bermuda.

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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