Barclays vs American Express Which Is More Profitable?

Barclays and American Express are both prominent players in the financial industry, offering a wide range of products and services to their customers. While Barclays is a global financial services company with a strong presence in the banking sector, American Express is known for its robust credit card offerings and premium customer service. Investors looking to add stocks from these companies to their portfolios may want to consider factors such as financial performance, industry trends, and market stability before making a decision.

Barclays or American Express?

When comparing Barclays and American Express, 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 Barclays and American Express.

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. Barclays has a dividend yield of 3.87%, while American Express has a dividend yield of 0.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Barclays reports a 5-year dividend growth of 9.63% year and a payout ratio of 0.00%. On the other hand, American Express reports a 5-year dividend growth of 10.01% year and a payout ratio of 19.64%.

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 Barclays P/E ratio at 36.59 and American Express's P/E ratio at 21.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Barclays P/B ratio is 2.58 while American Express's P/B ratio is 7.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Barclays has seen a 5-year revenue growth of -0.76%, while American Express's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Barclays's ROE at 8.15% and American Express's ROE at 34.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.51 for Barclays and $301.25 for American Express. Over the past year, Barclays's prices ranged from $7.07 to $13.83, with a yearly change of 95.62%. American Express's prices fluctuated between $177.50 and $307.82, with a yearly change of 73.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.