Lloyds Banking Group PLC (LYG) versus United Community Financial Corp. (UCFC) Critical Review
United Community Financial Corp. (NASDAQ: UCFC) and Lloyds Banking Group PLC (NYSE:LYG) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
United Community Financial Corp. pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Lloyds Banking Group PLC pays an annual dividend of $0.14 per share and has a dividend yield of 3.9%. United Community Financial Corp. pays out 39.0% of its earnings in the form of a dividend. Lloyds Banking Group PLC pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
United Community Financial Corp. has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Lloyds Banking Group PLC has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Valuation & Earnings
This table compares United Community Financial Corp. and Lloyds Banking Group PLC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|United Community Financial Corp.||$91.26 million||5.29||$20.39 million||$0.41||23.68|
|Lloyds Banking Group PLC||$22.36 billion||0.13||$113.08 million||$0.14||25.86|
Lloyds Banking Group PLC has higher revenue and earnings than United Community Financial Corp.. United Community Financial Corp. is trading at a lower price-to-earnings ratio than Lloyds Banking Group PLC, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for United Community Financial Corp. and Lloyds Banking Group PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Community Financial Corp.||1||0||2||0||2.33|
|Lloyds Banking Group PLC||5||2||6||0||2.08|
United Community Financial Corp. presently has a consensus target price of $10.50, suggesting a potential upside of 8.14%. Given United Community Financial Corp.’s stronger consensus rating and higher probable upside, equities analysts plainly believe United Community Financial Corp. is more favorable than Lloyds Banking Group PLC.
This table compares United Community Financial Corp. and Lloyds Banking Group PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Community Financial Corp.||18.95%||8.90%||1.00%|
|Lloyds Banking Group PLC||12.97%||18.07%||1.07%|
Insider & Institutional Ownership
58.2% of United Community Financial Corp. shares are owned by institutional investors. Comparatively, 2.1% of Lloyds Banking Group PLC shares are owned by institutional investors. 3.6% of United Community Financial Corp. shares are owned by insiders. Comparatively, 0.0% of Lloyds Banking Group PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
United Community Financial Corp. Company Profile
United Community Financial Corp. is financial services holding company. The Company’s subsidiaries include The Home Savings and Loan Company of Youngstown, Ohio (Home Savings or the Bank), HSB Insurance, LLC and HSB Capital, LLC. The principal business of Home Savings is the origination of mortgage loans, including construction loans, on residential and nonresidential real estate located in Home Savings’ primary market area. In addition to real estate lending, Home Savings originates commercial loans and various types of consumer loans. Funds for lending and other investment activities are obtained primarily from retail deposits. HSB Insurance, LLC is an insurance agency that offers a range of insurance products for business and residential customers, which include, auto, homeowners, life-health, commercial, surety bonds and aviation. HSB Capital, LLC provides mezzanine funding for customers. Mezzanine loans are offered to customers in United Community’s market area.
Lloyds Banking Group PLC Company Profile
Lloyds Banking Group plc is a provider of financial services to individual and business customers in the United Kingdom. The Company’s main business activities are retail and commercial banking, general insurance, and long-term savings, protection and investment. The Company’s segments are Retail, Commercial Banking, Consumer Finance, Insurance and Other. The Retail segment offers a range of financial service products, including current accounts, savings and mortgages. The Commercial Banking segment offers a range of products and services, such as lending, transactional banking, working capital management, risk management and debt capital markets services. The Consumer Finance segment offers consumer lending products, including motor finance, credit cards, and unsecured personal loans. The Insurance segment provides a range of protection, pension and investment products. Its brands include Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, Colleys, Lex Autolease and AMC.
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