LYG vs. RY, MUFG, HDB, TD, IBN, SMFG, SAN, BBVA, BMO, and ING
Should you be buying Lloyds Banking Group stock or one of its competitors? The main competitors of Lloyds Banking Group include Royal Bank of Canada (RY), Mitsubishi UFJ Financial Group (MUFG), HDFC Bank (HDB), Toronto-Dominion Bank (TD), ICICI Bank (IBN), Sumitomo Mitsui Financial Group (SMFG), Banco Santander (SAN), Banco Bilbao Vizcaya Argentaria (BBVA), Bank of Montreal (BMO), and ING Groep (ING). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Royal Bank of Canada (NYSE:RY) and Lloyds Banking Group (NYSE:LYG) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, media sentiment, community ranking, earnings, profitability and analyst recommendations.
Royal Bank of Canada presently has a consensus target price of $133.25, suggesting a potential upside of 25.25%. Lloyds Banking Group has a consensus target price of $73.44, suggesting a potential upside of 2,570.45%. Given Royal Bank of Canada's higher probable upside, analysts plainly believe Lloyds Banking Group is more favorable than Royal Bank of Canada.
Royal Bank of Canada has higher revenue and earnings than Lloyds Banking Group. Lloyds Banking Group is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
Royal Bank of Canada has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Lloyds Banking Group has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Lloyds Banking Group has a net margin of 13.41% compared to Lloyds Banking Group's net margin of 12.12%. Lloyds Banking Group's return on equity of 14.87% beat Royal Bank of Canada's return on equity.
In the previous week, Royal Bank of Canada had 20 more articles in the media than Lloyds Banking Group. MarketBeat recorded 26 mentions for Royal Bank of Canada and 6 mentions for Lloyds Banking Group. Royal Bank of Canada's average media sentiment score of 1.35 beat Lloyds Banking Group's score of 0.46 indicating that Lloyds Banking Group is being referred to more favorably in the news media.
Lloyds Banking Group received 208 more outperform votes than Royal Bank of Canada when rated by MarketBeat users. Likewise, 67.43% of users gave Lloyds Banking Group an outperform vote while only 55.78% of users gave Royal Bank of Canada an outperform vote.
45.3% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 2.2% of Lloyds Banking Group shares are held by institutional investors. 0.0% of Lloyds Banking Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.8%. Lloyds Banking Group pays an annual dividend of $0.18 per share and has a dividend yield of 6.5%. Royal Bank of Canada pays out 50.6% of its earnings in the form of a dividend. Lloyds Banking Group pays out 47.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Royal Bank of Canada has raised its dividend for 14 consecutive years and Lloyds Banking Group has raised its dividend for 1 consecutive years. Lloyds Banking Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Royal Bank of Canada beats Lloyds Banking Group on 13 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LYG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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