Lloyds Banking Group (NYSE:LYG) and Bank of East Asia (OTCMKTS:BKEAY) Financial Contrast

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

Analyst Ratings

This is a breakdown of current ratings for Lloyds Banking Group and Bank of East Asia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lloyds Banking Group	0	5	5	1	2.64
Bank of East Asia	1	0	0	0	1.00

Insider & Institutional 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 company will outperform the market over the long term.

Profitability

This table compares Lloyds Banking Group and Bank of East Asia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lloyds Banking Group	18.04%	8.38%	0.42%
Bank of East Asia	N/A	N/A	N/A

Risk & Volatility

Lloyds Banking Group has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Bank of East Asia has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Dividends

Lloyds Banking Group pays an annual dividend of $0.13 per share and has a dividend yield of 2.4%. Bank of East Asia pays an annual dividend of $0.08 per share and has a dividend yield of 4.5%. Lloyds Banking Group pays out 37.1% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Lloyds Banking Group and Bank of East Asia”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lloyds Banking Group	$43.81 billion	1.79	$5.65 billion	$0.35	15.21
Bank of East Asia	$5.67 billion	0.83	$590.75 million	N/A	N/A

Lloyds Banking Group has higher revenue and earnings than Bank of East Asia.

Summary

Lloyds Banking Group beats Bank of East Asia on 12 of the 14 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 Bank of East Asia

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services. Its personal banking services include corporate, individual, savings, current, time deposit, and supreme accounts; and time deposits, foreign currency deposits, MAS services, and auto-payroll products, as well as safe deposit boxes and remittance services. The company also provides corporate banking services, such as SME loans and financing guarantee schemes; corporate and commercial financing products, including syndicated and construction loans, acquisition and structured financing, working capital financing, share financing and IPO-related loans, and commercial mortgages; trade finance services and expert trade solutions; factoring services; import and export trade finance; guarantee services; eTradeConnect that allows buyers and sellers to connect, transact, share information, and submit applications for financing through a single platform; cash management services; corporate wealth management products; foreign exchange and treasury products; and marine cargo, property, trade credit, employee compensation, life, savings, and endowment insurance plans. In addition, it offers private banking services comprising investment advisory services; investment solutions, such as unit trusts, linked deposits, currency trading and management, global equities and bonds investments, structured products, and options and derivatives; portfolio management services; securities and futures broking services; cyber banking, credit cards, and ATM; and various international services. The company operates outlets in Hong Kong, rest of Greater China, Singapore, Malaysia, the United Kingdom, and the United States. The Bank of East Asia, Limited was incorporated in 1918 and is headquartered in Central, Hong Kong.