Lloyds Banking Group (NYSE:LYG) and Bankinter (OTCMKTS:BKNIY) Critical Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lloyds Banking Group	17.51%	9.28%	0.48%
Bankinter	20.63%	17.35%	0.85%

Dividends

Lloyds Banking Group pays an annual dividend of $0.13 per share and has a dividend yield of 2.9%. Bankinter pays an annual dividend of $0.43 per share and has a dividend yield of 2.7%. Lloyds Banking Group pays out 32.5% of its earnings in the form of a dividend. Bankinter pays out 35.2% 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.

Volatility & Risk

Lloyds Banking Group has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Bankinter has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Lloyds Banking Group and Bankinter, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lloyds Banking Group	0	3	4	1	2.75
Bankinter	1	5	0	0	1.83

Earnings and Valuation

This table compares Lloyds Banking Group and Bankinter”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lloyds Banking Group	$43.81 billion	1.54	$5.65 billion	$0.40	11.29
Bankinter	$5.44 billion	N/A	$1.03 billion	$1.22	13.19

Lloyds Banking Group has higher revenue and earnings than Bankinter. Lloyds Banking Group is trading at a lower price-to-earnings ratio than Bankinter, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Lloyds Banking Group beats Bankinter on 10 of the 15 factors compared between the two stocks.

About Lloyds Banking Group

Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial services in the United Kingdom and internationally. It operates in three segments: Retail; Commercial Banking; and Insurance, Pensions and Investments. The Retail segment offers a range of financial service products, including current accounts, savings, mortgages, motor finance, unsecured loans, leasing solutions, and credit cards to personal customers. The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, and debt financing services to small and medium-sized entities, corporates, and institutions. The Insurance, Pensions, and Investments segment offers insurance, investment, and pension management products and services. It also provides digital banking services. The company offers its products and services under the Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, MBNA, Schroders Personal Wealth, Black Horse, Lex Autolease, Birmingham Midshires, LDC, AMC, Embark Group, Citra, IWeb, Cavendish Online, and Tusker brand names. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.