Critical Review: Lion Finance Group (OTCMKTS:BDGSF) and National Bank of Canada (OTCMKTS:NTIOF)

Lion Finance Group (OTCMKTS:BDGSF) and National Bank of Canada (OTCMKTS:NTIOF) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

0.1% of National Bank of Canada shares are held by institutional investors. 0.3% of National Bank of Canada shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Lion Finance Group and National Bank of Canada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lion Finance Group	32.42%	28.33%	3.88%
National Bank of Canada	15.34%	16.05%	0.83%

Risk and Volatility

Lion Finance Group has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, National Bank of Canada has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Lion Finance Group and National Bank of Canada, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion Finance Group	0	0	0	0	0.00
National Bank of Canada	0	5	4	0	2.44

Valuation & Earnings

This table compares Lion Finance Group and National Bank of Canada”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion Finance Group	$1.97 billion	2.36	$911.27 million	$17.40	6.00
National Bank of Canada	$8.38 billion	5.47	$2.80 billion	$7.33	15.99

National Bank of Canada has higher revenue and earnings than Lion Finance Group. Lion Finance Group is trading at a lower price-to-earnings ratio than National Bank of Canada, indicating that it is currently the more affordable of the two stocks.

Summary

National Bank of Canada beats Lion Finance Group on 9 of the 13 factors compared between the two stocks.

About Lion Finance Group

Bank of Georgia Group PLC, through its subsidiaries, provides banking and financial services with focus on the Georgian and Armenian markets. It operates through Retail Banking, SME Banking, Corporate Investment Banking, and BNB segments. The Retail Banking segment offers consumer loans, mortgage loans, overdrafts, credit cards, and other credit facilities; funds transfer and settlement services; and handles customers' deposits for individuals and legal entities. This segment primarily serves mass retail and affluent, and high-net-worth client segments. The SME Banking segment provides SME loans, micro loans, and consumer and mortgage loans; funds transfers and settlement services; and handles customers' deposits for legal entities. This segment serves small and medium-sized enterprises; and micro businesses. The Corporate Investment Banking segment provides loans and other credit facilities, funds transfers and settlement services, trade finance services, and documentary operations support services; handles saving and term deposits for corporate and institutional customers; and offers brokerage services. The BNB segment provides retail and corporate banking services to clients in Belarus. Bank of Georgia Group PLC was incorporated in 2017 and is headquartered in London, the United Kingdom.

About National Bank of Canada

National Bank of Canada provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, and savings and investment solutions; various insurance products; and commercial banking services, such as credit, and deposit, investment solutions, international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complimentary services. The Wealth Management segment provides full-service brokerage, private banking, direct brokerage, investment solutions, administrative and trade execution, transaction products, and trust and estate services. The Financial Markets segment offers corporate banking, advisory, and capital markets services; and project financing, debt, and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segment provides specialty finance products; and personal and commercial banking in Cambodia. National Bank of Canada was founded in 1859 and is headquartered in Montreal, Canada.