International Bancshares (NASDAQ:IBOC) & Barclays (NYSE:BCS) Critical Comparison

Barclays (NYSE:BCS) and International Bancshares (NASDAQ:IBOC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Barclays and International Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barclays	0	6	4	0	2.40
International Bancshares	0	0	1	0	3.00

International Bancshares has a consensus price target of $85.00, suggesting a potential upside of 28.42%. Given International Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe International Bancshares is more favorable than Barclays.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barclays	$30.94 billion	2.47	$9.46 billion	$2.78	8.23
International Bancshares	$859.07 million	4.79	$412.29 million	$6.63	9.98

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

Dividends

Barclays pays an annual dividend of $0.61 per share and has a dividend yield of 2.7%. International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.2%. Barclays pays out 21.9% of its earnings in the form of a dividend. International Bancshares pays out 22.0% 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. International Bancshares has raised its dividend for 16 consecutive years. Barclays is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

3.4% of Barclays shares are owned by institutional investors. Comparatively, 65.9% of International Bancshares shares are owned by institutional investors. 0.0% of Barclays shares are owned by insiders. Comparatively, 13.1% of International Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Barclays and International Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barclays	22.74%	9.02%	0.42%
International Bancshares	38.83%	12.67%	2.47%

Volatility & Risk

Barclays has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, International Bancshares has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Summary

International Bancshares beats Barclays on 11 of the 17 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 International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.