Lloyds Banking Group PLC (NYSE: LYG) and Westpac Banking Corporation (NYSE:WBK) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitabiliy, dividends, institutional ownership, earnings and valuation.

Valuation & Earnings

This table compares Lloyds Banking Group PLC and Westpac Banking Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lloyds Banking Group PLC $22.60 billion 3.13 $3.56 billion $0.18 19.83
Westpac Banking Corporation $15.12 billion 5.17 N/A N/A N/A

Lloyds Banking Group PLC has higher revenue and earnings than Westpac Banking Corporation.

Dividends

Lloyds Banking Group PLC pays an annual dividend of $0.13 per share and has a dividend yield of 3.6%. Westpac Banking Corporation pays an annual dividend of $1.36 per share and has a dividend yield of 5.8%. Lloyds Banking Group PLC pays out 72.2% of its earnings in the form of a dividend.

Profitability

This table compares Lloyds Banking Group PLC and Westpac Banking Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lloyds Banking Group PLC 16.50% 14.81% 0.88%
Westpac Banking Corporation N/A N/A N/A

Risk & Volatility

Lloyds Banking Group PLC has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Westpac Banking Corporation has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Lloyds Banking Group PLC and Westpac Banking Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lloyds Banking Group PLC 6 2 7 0 2.07
Westpac Banking Corporation 0 2 0 0 2.00

Insider and Institutional Ownership

2.0% of Lloyds Banking Group PLC shares are held by institutional investors. Comparatively, 0.6% of Westpac Banking Corporation shares are held by institutional investors. 0.0% of Lloyds Banking Group PLC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Lloyds Banking Group PLC beats Westpac Banking Corporation on 8 of the 12 factors compared between the two stocks.

Lloyds Banking Group PLC Company Profile

Lloyds Banking Group plc is a provider of financial services to individual and business customers in the United Kingdom. The Company’s main business activities are retail and commercial banking, general insurance, and long-term savings, protection and investment. The Company’s segments are Retail, Commercial Banking, Consumer Finance, Insurance and Other. The Retail segment offers a range of financial service products, including current accounts, savings and mortgages. The Commercial Banking segment offers a range of products and services, such as lending, transactional banking, working capital management, risk management and debt capital markets services. The Consumer Finance segment offers consumer lending products, including motor finance, credit cards, and unsecured personal loans. The Insurance segment provides a range of protection, pension and investment products. Its brands include Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, Colleys, Lex Autolease and AMC.

Westpac Banking Corporation Company Profile

Westpac Banking Corporation is a banking organization. The Company provides a range of banking and financial services in markets, including consumer, business and institutional banking and wealth management services. The Company is engaged in the provision of financial services, including lending, deposit taking, payments services, investment portfolio management and advice, superannuation and funds management, insurance services, leasing finance, general finance, interest rate risk management and foreign exchange services. The Company’s segments include Consumer Bank, Business Bank, BT Financial Group (BTFG), Westpac Institutional Bank (WIB) and Westpac New Zealand. The Company has branches throughout Australia, New Zealand, Asia and in the Pacific region. The Company through its division offers its services under various brands, such as Westpac, St.George, BankSA, Bank of Melbourne and RAMS brands.

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