Lloyds Banking Group (NYSE:LYG) and American Business Bank (OTCMKTS:AMBZ) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Lloyds Banking Group and American Business Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lloyds Banking Group N/A N/A N/A
American Business Bank 24.13% N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Lloyds Banking Group and American Business Bank, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lloyds Banking Group 1 5 6 0 2.42
American Business Bank 0 0 0 0 N/A

Valuation and Earnings

This table compares Lloyds Banking Group and American Business Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lloyds Banking Group $23.33 billion 1.02 $3.73 billion $0.53 2.55
American Business Bank $88.80 million 2.24 $22.08 million N/A N/A

Lloyds Banking Group has higher revenue and earnings than American Business Bank.

Risk & Volatility

Lloyds Banking Group has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, American Business Bank has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Insider and Institutional Ownership

1.8% of Lloyds Banking Group shares are held by institutional investors. Comparatively, 3.8% of American Business Bank shares are held by institutional investors. 0.0% of Lloyds Banking Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Lloyds Banking Group beats American Business Bank on 5 of the 9 factors compared between the two stocks.

Lloyds Banking Group Company Profile

Lloyds Banking Group plc provides banking and financial services under the Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows brands in the United Kingdom and internationally. It operates through three segments: Retail, Commercial Banking, and Insurance and Wealth. The Retail segment offers a range of financial service products, including current accounts, savings accounts, mortgages, motor finance, unsecured consumer loans, leasing solutions, and credit cards to personal and small business customers. The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, term lending, and debt capital markets services to small and medium-sized enterprises, corporates, mid markets, and financial institutions. The Insurance and Wealth segment offers life, home, car, and protection insurance products; pensions and investment products; and advisory services in areas, including investments, planning for retirement, and protection and inheritance tax planning. The company also provides digital, telephony, and mobile services. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom.

American Business Bank Company Profile

American Business Bank provides various banking and financial services to wholesalers, manufacturers, businesses, professionals, and non-profits in California. Its deposit products include checking, money market, savings, business demand deposit, business money market, special deposit, zero balance, and sweep accounts, as well as certificates of deposit. The company's loan products comprise personal loans, lines of credit, short term working capital lines, term loans, commercial/industrial real estate loans, and accounts receivable lines. It also offers various services, such as telephone notification, lock box processing, investment, courier, remote deposit, consulting, general business advice, investment banking, investment management, equipment leasing, residential mortgage lending, and professional referral services, as well as online banking services consisting of bill payment, fund transfer, account information, automatic clearing house origination, stop payment, and wire transfer services; and provides credit cards and ATM cards. In addition, the company offers international banking services, including international money transfer, letters of credit, foreign currency deposit, documentary and cleaning collection, and foreign currency exchange services. It operates through five loan production offices in Anaheim, Irvine, Torrance, the Warner Center, and Ontario. American Business Bank was founded in 1998 and is headquartered in Los Angeles, California.

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