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.
Lloyds Banking Group (NYSE:LYG) and Royal Bank of Canada (NYSE:RY) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their media sentiment, risk, analyst recommendations, community ranking, dividends, earnings, profitability, valuation and institutional ownership.
Lloyds Banking Group has a net margin of 13.41% compared to Royal Bank of Canada's net margin of 12.12%. Royal Bank of Canada's return on equity of 14.98% beat Lloyds Banking Group's return on equity.
Lloyds Banking Group has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
In the previous week, Royal Bank of Canada had 15 more articles in the media than Lloyds Banking Group. MarketBeat recorded 18 mentions for Royal Bank of Canada and 3 mentions for Lloyds Banking Group. Royal Bank of Canada's average media sentiment score of 1.23 beat Lloyds Banking Group's score of 0.92 indicating that Royal Bank of Canada is being referred to more favorably in the news media.
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.
Lloyds Banking Group received 211 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 55.72% of users gave Royal Bank of Canada an outperform vote.
2.2% of Lloyds Banking Group shares are owned by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are owned by institutional investors. 0.0% of Lloyds Banking Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Lloyds Banking Group presently has a consensus price target of $73.44, indicating a potential upside of 2,504.17%. Royal Bank of Canada has a consensus price target of $137.67, indicating a potential upside of 25.99%. Given Lloyds Banking Group's higher possible upside, equities research analysts plainly believe Lloyds Banking Group is more favorable than Royal Bank of Canada.
Lloyds Banking Group pays an annual dividend of $0.18 per share and has a dividend yield of 6.4%. Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.7%. Lloyds Banking Group pays out 47.4% of its earnings in the form of a dividend. Royal Bank of Canada pays out 50.6% 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. 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 12 of the 21 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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