Financial Review: Lloyds Banking Group (NYSE:LYG) and JSB Financial (OTCMKTS:JFWV)

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

Risk & Volatility

Lloyds Banking Group has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, JSB Financial has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Earnings & Valuation

This table compares Lloyds Banking Group and JSB Financial’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lloyds Banking Group	$44.03 billion	0.90	$6.79 billion	$0.40	6.23
JSB Financial	N/A	N/A	$3.00 million	N/A	N/A

Lloyds Banking Group has higher revenue and earnings than JSB Financial.

Dividends

Lloyds Banking Group pays an annual dividend of $0.18 per share and has a dividend yield of 7.2%. JSB Financial pays an annual dividend of $2.40 per share and has a dividend yield of 3.1%. Lloyds Banking Group pays out 45.0% of its earnings in the form of a dividend. Lloyds Banking Group has raised its dividend for 1 consecutive years. Lloyds Banking Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

2.2% of Lloyds Banking Group shares are owned by institutional investors. Comparatively, 0.1% of JSB Financial shares are owned by institutional investors. 0.0% of Lloyds Banking Group shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lloyds Banking Group	17.97%	11.29%	0.59%
JSB Financial	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Lloyds Banking Group and JSB Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lloyds Banking Group	1	2	2	0	2.20
JSB Financial	0	0	0	0	N/A

Lloyds Banking Group currently has a consensus price target of $99.00, suggesting a potential upside of 3,875.90%. Given Lloyds Banking Group’s higher possible upside, equities analysts clearly believe Lloyds Banking Group is more favorable than JSB Financial.

Summary

Lloyds Banking Group beats JSB Financial on 12 of the 13 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 JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.