Head-To-Head Analysis: Lloyds Banking Group (LYG) and Banco Latinoamericano de Comerci Extr (BLX)

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Lloyds Banking Group (NYSE: BLX) and Banco Latinoamericano de Comerci Extr (NYSE:BLX) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Valuation and Earnings

This table compares Lloyds Banking Group and Banco Latinoamericano de Comerci Extr’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lloyds Banking Group $50.67 billion 1.08 $4.91 billion $0.55 5.53
Banco Latinoamericano de Comerci Extr $244.58 million 3.35 $81.99 million $2.08 10.00

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

Risk and Volatility

Lloyds Banking Group has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comerci Extr has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lloyds Banking Group and Banco Latinoamericano de Comerci Extr, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lloyds Banking Group 2 5 5 0 2.25
Banco Latinoamericano de Comerci Extr 0 1 0 0 2.00

Banco Latinoamericano de Comerci Extr has a consensus target price of $28.00, indicating a potential upside of 34.62%. Given Banco Latinoamericano de Comerci Extr’s higher probable upside, analysts clearly believe Banco Latinoamericano de Comerci Extr is more favorable than Lloyds Banking Group.

Dividends

Lloyds Banking Group pays an annual dividend of $0.11 per share and has a dividend yield of 3.6%. Banco Latinoamericano de Comerci Extr pays an annual dividend of $1.54 per share and has a dividend yield of 7.4%. Lloyds Banking Group pays out 20.0% of its earnings in the form of a dividend. Banco Latinoamericano de Comerci Extr pays out 74.0% 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 has raised its dividend for 2 consecutive years.

Institutional & Insider Ownership

2.6% of Lloyds Banking Group shares are owned by institutional investors. Comparatively, 16.0% of Banco Latinoamericano de Comerci Extr shares are owned by institutional investors. 0.0% of Lloyds Banking Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Lloyds Banking Group and Banco Latinoamericano de Comerci Extr’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lloyds Banking Group 15.05% 15.62% 0.93%
Banco Latinoamericano de Comerci Extr 29.16% 7.39% 1.25%

Summary

Banco Latinoamericano de Comerci Extr beats Lloyds Banking Group on 9 of the 17 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. The company 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, and unsecured consumer lending products 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 for small and medium sized enterprises, corporates, mid-markets, and financial institutions. The Insurance and Wealth segment offers insurance products, such as life, home, motor, and protection insurance; investments comprising pensions and investment products; and wealth management products and services. It also provides credit cards, and personal and business loans; and online and telephone banking services. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom.

Banco Latinoamericano de Comerci Extr Company Profile

Banco Latinoamericano de Comercio Exterior, S.A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates through two segments, Commercial and Treasury. It offers short and medium-term bilateral, collateral-backed, short and medium term trade, and pre-export financing structured loans; and discounting of notes, cross-border leasing, pre- and post-export financing, import financing, letters of credit, bank guarantees, documentary collection, irrevocable reimbursement undertakings, bankers' acceptance, vendor finance, and ECA-backed financing services. The company also provides working capital financing solutions, including short and medium-term bilateral loans, collateral-backed bilateral loans, leases, and vendor finance; structured syndicated and clubbed loans, such as acquisition financing, pre-export financing, A/B loan financing with multilateral agencies, bridge loans, and liability management; and treasury solutions comprising term deposits and private placements. It primarily serves corporations, middle-market companies, and banking and financial institutions. The company was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S.A. in June 2009. Banco Latinoamericano de Comercio Exterior, S.A. was founded in 1977 and is headquartered in Panama City, the Republic of Panama.

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