Comparing Coastal Financial (NASDAQ:CCB) and Barclays (NYSE:BCS)

Coastal Financial (NASDAQ:CCB) 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 institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Risk and Volatility

Coastal Financial has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Barclays has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares Coastal Financial and Barclays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coastal Financial	-0.53%	-0.80%	-0.08%
Barclays	22.27%	8.80%	0.42%

Institutional & Insider Ownership

59.2% of Coastal Financial shares are held by institutional investors. Comparatively, 3.4% of Barclays shares are held by institutional investors. 13.5% of Coastal Financial shares are held by company insiders. Comparatively, 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.

Earnings & Valuation

This table compares Coastal Financial and Barclays”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coastal Financial	$458.18 million	1.45	$46.99 million	($0.28)	-154.78
Barclays	$30.75 billion	2.45	$9.46 billion	$2.68	8.42

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Coastal Financial and Barclays, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coastal Financial	2	0	5	0	2.43
Barclays	0	6	4	0	2.40

Coastal Financial currently has a consensus price target of $91.33, suggesting a potential upside of 110.75%. Given Coastal Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Coastal Financial is more favorable than Barclays.

Summary

Barclays beats Coastal Financial on 9 of the 14 factors compared between the two stocks.

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

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.