Head to Head Review: Barclays (NYSE:BCS) & Sumitomo Mitsui Trust (OTCMKTS:SUTNY)

Barclays (NYSE:BCS) and Sumitomo Mitsui Trust (OTCMKTS:SUTNY) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

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

Dividends

Barclays pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Sumitomo Mitsui Trust pays an annual dividend of $0.10 per share and has a dividend yield of 1.8%. Barclays pays out 22.4% of its earnings in the form of a dividend. Sumitomo Mitsui Trust pays out 23.3% 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Barclays and Sumitomo Mitsui Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barclays	0	6	4	0	2.40
Sumitomo Mitsui Trust	0	1	0	0	2.00

Profitability

This table compares Barclays and Sumitomo Mitsui Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barclays	22.27%	8.80%	0.42%
Sumitomo Mitsui Trust	11.81%	10.45%	0.45%

Earnings & Valuation

This table compares Barclays and Sumitomo Mitsui Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barclays	$38.42 billion	2.30	$9.46 billion	$2.68	9.77
Sumitomo Mitsui Trust	$19.82 billion	1.58	$1.99 billion	$0.43	13.06

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

Summary

Barclays beats Sumitomo Mitsui Trust on 11 of the 14 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 Sumitomo Mitsui Trust

Sumitomo Mitsui Trust Holdings, Inc. operates as a trust bank in Japan and internationally. It offers supervising services for management strategies, and financial and human resource management; and general affairs, business process, corporate administration, operational process, risk, and compliance management services; and internal auditing services. The company also provides real estate brokerage, investment management, and investment advisory services for individual and corporate clients; high-level professional consulting services; loan guarantees and payment collection agency services; issuing credit cards; internet banking; securities administration and credit card services; and advanced financial instruments, such as leasing and credit services, and credit card financing services, as well as mortgage loans and managing private equity funds and related advisory services. In addition, it offers back-office services, such as business management and system administration for stock transfer agencies; clerical works, including managing shareholders registry and special accounts; custody and fund administration services; stock transfer agency services; asset management services; and retail total solution, marketing, and fiduciary services, as well as system development and maintenance. Further, the company provides facilities management, clerical work outsourcing, and leasing of buildings; consulting services related to digital transformation, data-analytics, and a range of research and studies; and evaluation of mutual funds, discretionary investment funds, and insurance products, as well as engages in trustee and temporary staffing businesses. The company was formerly known as Chuo Mitsui Trust Holdings, Inc. and changed its name to Sumitomo Mitsui Trust Holdings, Inc. in 2011. Sumitomo Mitsui Trust Holdings, Inc. was founded in 1924 and is headquartered in Tokyo, Japan.