Lloyds Banking Group PLC (LYG) vs NatWest Group plc (NWG)

Lloyds Banking Group PLC and NatWest Group plc are both Banks Regional companies. Lloyds Banking Group PLC is the larger, with a market value of $82.7B against $72.0B — 1.1× the size. NatWest Group plc trades at the lower P/E: 10.4× against 16.3×. NatWest Group plc grew revenue faster over the last twelve months: 35.8% against −42.6%. Lloyds Banking Group PLC has the higher net margin (55.0% vs 18.5%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; NatWest Group plc yields more (7.66% vs 6.78%). Across the 16 metrics below, NatWest Group plc leads on 9 and Lloyds Banking Group PLC on 7.

Valuation

Metric LYG NWG Banks Regional median
P/E 16.28 10.45 12.15
P/S 7.46 1.91 2.37
P/B 1.34 1.26 1.21
Price to free cash flow 2.23 4.20 10.80
EV/EBITDA n/m n/m —
EV/Sales (18.48) (2.16) 2.27
Earnings yield 6.14% 9.57% 8.11%
Free cash flow yield 44.85% 23.82% 8.98%

Profitability

Metric LYG NWG Banks Regional median
Gross margin 66.28% 55.71% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 55.01% 18.54% 18.66%
Free cash flow margin 0.00% 0.00% 21.18%
Return on equity 0.00% 0.00% 10.64%
Return on assets 0.00% 0.00% 1.13%
Return on invested capital 0.00% 0.00% 8.33%

Growth

Metric LYG NWG Banks Regional median
Revenue growth (TTM) (42.59%) 35.80% 6.61%
EPS growth (last fiscal year) (10.00%) 31.62% —
Revenue growth, 5-year CAGR 3.00% 18.23% 12.30%
Net income growth, 5-year CAGR 37.87% 0.00% 9.71%

Health

Metric LYG NWG Banks Regional median
Debt to equity 2.12 0.15 0.22
Current ratio 1.52 1.03 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric LYG NWG Banks Regional median
Dividend yield 6.78% 7.66% 3.75%
Payout ratio 0.29 0.31 0.27

Size

Metric LYG NWG Banks Regional median
Market cap 82.72b 71.97b 921.07m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack