Barclays vs Citizens Which Is a Smarter Choice?

Barclays and Citizens are two prominent companies in the banking and financial services sector, both competing for investors' attention as potential stocks to watch. Barclays, a British multinational bank, has a strong global presence and a diversified portfolio of financial products and services. On the other hand, Citizens, an American bank, has a focus on retail and commercial banking, with a solid reputation for customer service and community involvement. Investors may consider various factors such as financial performance, growth potential, and market conditions when choosing between Barclays and Citizens stocks.

Barclays or Citizens?

When comparing Barclays and Citizens, 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 Citizens.

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 3.88%, while Citizens has a dividend yield of 5.06%. 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, Citizens reports a 5-year dividend growth of -5.59% year and a payout ratio of 377.59%.

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 36.56 and Citizens's P/E ratio at 74.48. 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 Citizens's P/B ratio is 1.24.

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 Citizens's is -0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Barclays's ROE at 8.15% and Citizens's ROE at 1.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.51 for Barclays and $9.20 for Citizens. Over the past year, Barclays's prices ranged from $7.07 to $13.83, with a yearly change of 95.62%. Citizens's prices fluctuated between $6.64 and $9.55, with a yearly change of 43.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.