Intercorp Financial Services (NYSE:IFS) and Lloyds Banking Group (NYSE:LYG) Head-To-Head Review

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

Dividends

Lloyds Banking Group pays an annual dividend of $0.20 per share and has a dividend yield of 5.9%. Intercorp Financial Services pays an annual dividend of $0.95 per share and has a dividend yield of 3.0%. Lloyds Banking Group pays out 60.6% of its earnings in the form of a dividend. Intercorp Financial Services pays out 31.5% 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Lloyds Banking Group and Intercorp Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lloyds Banking Group	0	7	4	1	2.50
Intercorp Financial Services	0	0	1	0	3.00

Lloyds Banking Group currently has a consensus target price of $2.75, suggesting a potential downside of 18.76%. Intercorp Financial Services has a consensus target price of $30.00, suggesting a potential downside of 3.88%. Given Intercorp Financial Services’ stronger consensus rating and higher probable upside, analysts plainly believe Intercorp Financial Services is more favorable than Lloyds Banking Group.

Earnings and Valuation

This table compares Lloyds Banking Group and Intercorp Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lloyds Banking Group	$18.60 billion	2.76	$6.79 billion	$0.33	10.26
Intercorp Financial Services	$6.54 billion	0.55	$346.47 million	$3.02	10.34

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

Insider & Institutional Ownership

2.2% of Lloyds Banking Group shares are owned by institutional investors. 0.0% of Lloyds Banking Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Lloyds Banking Group and Intercorp Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lloyds Banking Group	11.45%	8.46%	0.44%
Intercorp Financial Services	21.03%	12.38%	1.38%

Volatility & Risk

Lloyds Banking Group has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Intercorp Financial Services has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Summary

Lloyds Banking Group beats Intercorp Financial Services on 9 of the 17 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 Intercorp Financial Services

Intercorp Financial Services Inc., together with its subsidiaries, offers banking, insurance, wealth management, and payment services for retail and commercial clients in Peru. The company provides loans, credit facilities, deposits, and current accounts; life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products; and brokerage and investment management services. It engages in the development, management, operation, and processing of credit and debit cards; facilitation of payments and services through commercial stores; and installation and maintenance of infrastructure for transactions through electronic commerce modality and networks of payment methods processors. The company was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.