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

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

Profitability

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

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

Volatility and Risk

Intercorp Financial Services has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Lloyds Banking Group has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

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

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

Intercorp Financial Services presently has a consensus target price of $30.00, suggesting a potential upside of 1.54%. Lloyds Banking Group has a consensus target price of $2.75, suggesting a potential downside of 17.54%. Given Intercorp Financial Services’ stronger consensus rating and higher probable upside, research analysts plainly believe Intercorp Financial Services is more favorable than Lloyds Banking Group.

Institutional & Insider Ownership

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

Dividends

Intercorp Financial Services pays an annual dividend of $0.95 per share and has a dividend yield of 3.2%. Lloyds Banking Group pays an annual dividend of $0.20 per share and has a dividend yield of 6.0%. Intercorp Financial Services pays out 31.5% of its earnings in the form of a dividend. Lloyds Banking Group pays out 60.6% 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intercorp Financial Services	$6.54 billion	0.52	$346.47 million	$3.02	9.78
Lloyds Banking Group	$18.60 billion	2.72	$6.79 billion	$0.33	10.11

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

Summary

Lloyds Banking Group beats Intercorp Financial Services on 9 of the 17 factors compared between the two stocks.

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.

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.