Nordea Bank Abp (OTCMKTS:NRDBY – Get Rating) and Lloyds Banking Group (NYSE:LYG – Get Rating) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
Dividends
Nordea Bank Abp pays an annual dividend of $0.47 per share and has a dividend yield of 5.1%. Lloyds Banking Group pays an annual dividend of $0.08 per share and has a dividend yield of 3.9%. Nordea Bank Abp pays out 49.0% of its earnings in the form of a dividend. Lloyds Banking Group pays out 25.0% 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.
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Profitability
This table compares Nordea Bank Abp and Lloyds Banking Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Nordea Bank Abp | 33.58% | 11.99% | 0.65% |
| Lloyds Banking Group | 20.69% | 10.41% | 0.61% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Nordea Bank Abp and Lloyds Banking Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Nordea Bank Abp | 0 | 4 | 5 | 0 | 2.56 |
| Lloyds Banking Group | 1 | 2 | 8 | 0 | 2.64 |
Nordea Bank Abp presently has a consensus price target of $45.43, suggesting a potential upside of 391.70%. Given Nordea Bank Abp's higher probable upside, research analysts clearly believe Nordea Bank Abp is more favorable than Lloyds Banking Group.
Insider & Institutional Ownership
2.0% 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Nordea Bank Abp has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Lloyds Banking Group has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.
Valuation and Earnings
This table compares Nordea Bank Abp and Lloyds Banking Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Nordea Bank Abp | $11.62 billion | 2.97 | $4.30 billion | $0.96 | 9.63 |
| Lloyds Banking Group | $51.49 billion | 0.67 | $7.95 billion | $0.32 | 6.34 |
Lloyds Banking Group has higher revenue and earnings than Nordea Bank Abp. Lloyds Banking Group is trading at a lower price-to-earnings ratio than Nordea Bank Abp, indicating that it is currently the more affordable of the two stocks.
About Nordea Bank Abp
(Get Rating)
Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates and Institutions, and Asset and Wealth Management segments. The Personal Banking segment provides various financial services to household customers through internet and mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and finance solutions to corporate and personal customers. The Large Corporates and Institutions segment provides financing, cash management and payment, investment banking, and securities services, as well as capital market products to corporate and institutional customers. The Asset and Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. This segment also offers life and pensions products and services. The company was founded in 1820 and is headquartered in Helsinki, Finland.
About Lloyds Banking Group
(Get Rating)
Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial services in the United Kingdom. It 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, mortgages, motor finance, unsecured loans, leasing solutions, and credit cards to personal and small business customers. The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, debt financing, and debt capital market services to small and medium-sized entities, corporates, and financial institutions. The Insurance and Wealth segment offers insurance, investment and wealth 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, and Scottish Widows brands. Lloyds Banking Group plc was founded in 1695 and is based in London, the United Kingdom.
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