American Express vs Barclays

American Express and Barclays are two prominent financial companies with a strong presence in the stock market. American Express is known for its credit cards, travel services, and financial products, while Barclays is a multinational investment bank and financial services company. Both companies have a solid reputation and have experienced success in the market. Investors may be interested in comparing the performance and potential growth of American Express and Barclays stocks to make informed investment decisions.

American Express or Barclays?

When comparing American Express and Barclays, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between American Express and Barclays.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. American Express has a dividend yield of 0.97%, while Barclays has a dividend yield of 4.42%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. American Express reports a 5-year dividend growth of 10.01% year and a payout ratio of 19.17%. On the other hand, Barclays reports a 5-year dividend growth of 9.63% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with American Express P/E ratio at 20.19 and Barclays's P/E ratio at 29.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. American Express P/B ratio is 6.72 while Barclays's P/B ratio is 2.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, American Express has seen a 5-year revenue growth of 0.74%, while Barclays's is -0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Express's ROE at 34.61% and Barclays's ROE at 7.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $276.90 for American Express and $12.28 for Barclays. Over the past year, American Express's prices ranged from $140.91 to $281.42, with a yearly change of 99.72%. Barclays's prices fluctuated between $6.23 and $12.49, with a yearly change of 100.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.