Financial Comparison: Lloyds Banking Group (LYG) versus The Competition

Lloyds Banking Group (NYSE:LYG) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Lloyds Banking Group to related businesses based on the strength of its profitability, risk, valuation, analyst recommendations, earnings, institutional ownership and dividends.

Volatility & Risk

Lloyds Banking Group has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Lloyds Banking Group’s rivals have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Profitability

This table compares Lloyds Banking Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lloyds Banking Group	28.13%	12.66%	0.61%
Lloyds Banking Group Competitors	15.62%	9.43%	0.93%

Insider and Institutional Ownership

2.1% of Lloyds Banking Group shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 0.0% of Lloyds Banking Group shares are held by insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Lloyds Banking Group and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lloyds Banking Group	$25.61 billion	$6.14 billion	9.82
Lloyds Banking Group Competitors	$9.95 billion	$2.42 billion	20.99

Lloyds Banking Group has higher revenue and earnings than its rivals. Lloyds Banking Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations for Lloyds Banking Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lloyds Banking Group	1	4	6	0	2.45
Lloyds Banking Group Competitors	7497	30259	27869	1492	2.35

Lloyds Banking Group currently has a consensus target price of $6.00, suggesting a potential upside of 15.27%. As a group, “Banks” companies have a potential upside of 14.43%. Given Lloyds Banking Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Lloyds Banking Group is more favorable than its rivals.

Dividends

Lloyds Banking Group pays an annual dividend of $0.17 per share and has a dividend yield of 3.3%. Lloyds Banking Group pays out 32.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Lloyds Banking Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Lloyds Banking Group beats its rivals on 8 of the 15 factors compared.

About Lloyds Banking Group

Lloyds Banking Group is a UK-based financial services company serving personal, business and institutional customers. Its operations include retail and commercial banking, insurance, pensions and wealth management, delivered through brands such as Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows. The group operates primarily in the United Kingdom, offering services including current and savings accounts, mortgages, lending, payment services, business banking and insurance products. Lloyds Banking Group was formed in 2009 following Lloyds TSB’s acquisition of HBOS.