Comparing Intercorp Financial Services (NYSE:IFS) & Barclays (NYSE:BCS)

Intercorp Financial Services (NYSE:IFS – Get Rating) and Barclays (NYSE:BCS – Get Rating) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

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

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Institutional & Insider Ownership

7.7% of Intercorp Financial Services shares are owned by institutional investors. Comparatively, 3.3% of Barclays shares are owned by institutional investors. 0.0% of Barclays shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Intercorp Financial Services pays an annual dividend of $1.66 per share and has a dividend yield of 7.2%. Barclays pays an annual dividend of $0.47 per share and has a dividend yield of 6.2%. Intercorp Financial Services pays out 44.4% of its earnings in the form of a dividend. Barclays pays out 32.4% 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 has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Intercorp Financial Services and Barclays’ revenue, earnings per share (EPS) and valuation.

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

Analyst Ratings

This is a summary of current recommendations for Intercorp Financial Services and Barclays, as provided by MarketBeat.com.

Intercorp Financial Services currently has a consensus target price of $30.50, indicating a potential upside of 32.55%. Given Intercorp Financial Services’ higher possible upside, analysts plainly believe Intercorp Financial Services is more favorable than Barclays.

Risk and Volatility

Intercorp Financial Services has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Barclays has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Summary

Intercorp Financial Services beats Barclays on 9 of the 17 factors compared between the two stocks.

About Intercorp Financial Services

(Get Rating)

Intercorp Financial Services Inc. provides banking, insurance, and wealth management services for retail and commercial clients in Peru. The company operates through three segments: Banking, Insurance, and Wealth Management. It provides transactional accounts, such as cuenta sueldo and cuenta simple; savings accounts; investment accounts; and time deposits, certificates of deposit, and compensation for service time accounts. The company also offers retail banking products, including credit cards, payroll deduction loans, mortgages, and consumer loans, as well as cash, student, and collateralized cash loans. In addition, the company provides corporate, medium-size business, and small business banking services; and commercial banking products, which include commercial real estate, vehicles, machinery and other goods, cash management, trade finance, and electronic factoring products. Further, it offers treasury and institutional banking, as well as securitization services. Additionally, the company provides annuities and conventional life insurance, and other retail insurance products, as well as financial advisory services for equities, fixed income, structured products, alternative investments, and managed accounts; brokerage, and investment management services. As of December 31, 2021, it operated 189 financial stores and 1,581 ATMs. Intercorp Financial Services Inc. was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.

About Barclays

(Get Rating)

Barclays Plc operates as a bank holding company, which engages in the provision of retail banking, credit cards, corporate and investment banking, and wealth management services. The firm operates through Barclays UK and Barclays International segments. The Barclays UK segment consists the U.K. retail banking operations, U.K. consumer credit card business, U.K. wealth management business and corporate banking for smaller businesses. The Barclays International segment includes corporate banking franchise, the investment bank, the U.S. and international cards business and international wealth management. Barclays was founded on July 20, 1896 and is headquartered in London, the United Kingdom.

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