Head to Head Survey: Bank Hapoalim (OTCMKTS:BKHYY) vs. Barclays (NYSE:BCS)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Bank Hapoalim and Barclays, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank Hapoalim	0	1	0	1	3.00
Barclays	0	6	4	0	2.40

Dividends

Bank Hapoalim pays an annual dividend of $3.75 per share and has a dividend yield of 3.2%. Barclays pays an annual dividend of $0.61 per share and has a dividend yield of 2.7%. Bank Hapoalim pays out 33.1% of its earnings in the form of a dividend. Barclays pays out 21.9% 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.

Earnings & Valuation

This table compares Bank Hapoalim and Barclays”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank Hapoalim	$12.56 billion	2.45	$2.84 billion	$11.32	10.42
Barclays	$38.42 billion	1.94	$9.46 billion	$2.78	8.02

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

Volatility and Risk

Bank Hapoalim has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Barclays has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

3.4% of Barclays shares are owned by institutional investors. 0.0% of Barclays shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Bank Hapoalim and Barclays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank Hapoalim	22.88%	14.08%	1.17%
Barclays	22.74%	9.02%	0.42%

Summary

Bank Hapoalim beats Barclays on 10 of the 16 factors compared between the two stocks.

About Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.

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.