Royal Bank of Scotland Group (NYSE:RBS) and FREEDOM BK OF V/SH SH (OTCMKTS:FDVA) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares Royal Bank of Scotland Group and FREEDOM BK OF V/SH SH’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Royal Bank of Scotland Group $20.84 billion 1.67 $2.79 billion $0.48 11.96
FREEDOM BK OF V/SH SH $25.57 million 2.54 $190,000.00 N/A N/A

Royal Bank of Scotland Group has higher revenue and earnings than FREEDOM BK OF V/SH SH.

Volatility and Risk

Royal Bank of Scotland Group has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, FREEDOM BK OF V/SH SH has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Institutional & Insider Ownership

0.6% of Royal Bank of Scotland Group shares are owned by institutional investors. Comparatively, 2.7% of FREEDOM BK OF V/SH SH shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Royal Bank of Scotland Group and FREEDOM BK OF V/SH SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Bank of Scotland Group 2 7 5 0 2.21
FREEDOM BK OF V/SH SH 0 0 0 0 N/A

Royal Bank of Scotland Group presently has a consensus target price of $287.00, suggesting a potential upside of 4,900.00%. Given Royal Bank of Scotland Group’s higher probable upside, equities research analysts clearly believe Royal Bank of Scotland Group is more favorable than FREEDOM BK OF V/SH SH.

Dividends

Royal Bank of Scotland Group pays an annual dividend of $0.08 per share and has a dividend yield of 1.4%. FREEDOM BK OF V/SH SH does not pay a dividend. Royal Bank of Scotland Group pays out 16.7% of its earnings in the form of a dividend.

Profitability

This table compares Royal Bank of Scotland Group and FREEDOM BK OF V/SH SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Bank of Scotland Group 13.02% 4.37% 0.28%
FREEDOM BK OF V/SH SH 1.54% 0.67% 0.08%

Summary

Royal Bank of Scotland Group beats FREEDOM BK OF V/SH SH on 9 of the 13 factors compared between the two stocks.

Royal Bank of Scotland Group Company Profile

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. It operates through Personal & Business Banking, Commercial & Private Banking, RBS International, and NatWest Markets segments. The company also offers wealth management, financial planning, investment management, asset finance, and offshore banking; and financing and risk solutions, as well as trading and flow sales services. The Royal Bank of Scotland Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

FREEDOM BK OF V/SH SH Company Profile

The Freedom Bank of Virginia provides various banking products and services primarily in the Northern Virginia area. The company accepts checking and savings accounts, certificates of deposit, and individual retirement accounts. Its loan products include consumer loans, such as installment loans, home equity line of credit, and mortgages for purchasing homes or refinancing existing mortgages; and commercial loans, including business installment loans, commercial line of credit, commercial real estate mortgages, and small business administration loans, as well as mortgage services. The company also provides credit and ATM/debit cards; insurance products; and online security, overdraft protection, notary, Merchant Visa and MasterCard agency, and online and telephone banking services, as well as wire transfers, ACH transactions, direct and night deposits, safe deposit boxes, cashier's checks, certified checks, money orders, and savings bonds. In addition, it acts as a broker-dealer in securities. The company operates through a network of branch offices located in Vienna, Fairfax, Reston, and Chantilly in Virginia. The Freedom Bank of Virginia is headquartered in Fairfax, Virginia.

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