Barclays vs Hargreaves Lansdown Which Should You Buy?

Barclays and Hargreaves Lansdown are two leading financial institutions in the UK with a significant presence in the stock market. Barclays is a global investment bank and financial services company, while Hargreaves Lansdown is a prominent investment platform and wealth management firm. Both companies offer various investment opportunities to their clients, but they have distinct strategies and approaches towards stock trading. Understanding the differences between Barclays and Hargreaves Lansdown stocks can help investors make informed decisions on where to allocate their funds.

Barclays or Hargreaves Lansdown?

When comparing Barclays and Hargreaves Lansdown, 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 Hargreaves Lansdown.

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 3.97%, while Hargreaves Lansdown has a dividend yield of 5.25%. 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, Hargreaves Lansdown reports a 5-year dividend growth of 0.00% year and a payout ratio of 31.52%.

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 35.71 and Hargreaves Lansdown's P/E ratio at 7.99. 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 2.52 while Hargreaves Lansdown's P/B ratio is 6.19.

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 -0.33%, while Hargreaves Lansdown's is 0.64%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Barclays's ROE at 8.15% and Hargreaves Lansdown's ROE at 82.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.39 for Barclays and $13.65 for Hargreaves Lansdown. Over the past year, Barclays's prices ranged from $6.68 to $13.57, with a yearly change of 103.14%. Hargreaves Lansdown's prices fluctuated between $8.43 and $15.13, with a yearly change of 79.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.