Financial Comparison: Lion Finance Group (OTCMKTS:BDGSF) versus HDFC Bank (NYSE:HDB)

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

Institutional & Insider Ownership

17.6% of HDFC Bank shares are owned by institutional investors. 1.0% of HDFC Bank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HDFC Bank	0	2	1	1	2.75
Lion Finance Group	0	0	0	0	0.00

Risk & Volatility

HDFC Bank has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Lion Finance Group has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Earnings & Valuation

This table compares HDFC Bank and Lion Finance Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HDFC Bank	$55.70 billion	3.34	$7.88 billion	$1.64	22.23
Lion Finance Group	$1.97 billion	2.36	$911.27 million	$17.40	6.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HDFC Bank	14.94%	11.49%	1.60%
Lion Finance Group	32.42%	27.61%	3.77%

Summary

HDFC Bank beats Lion Finance Group on 10 of the 14 factors compared between the two stocks.

About HDFC Bank

HDFC Bank Limited provides banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in three segments: Wholesale Banking, Retail Banking, and Treasury Services. It accepts savings, salary, current, rural, public provident fund, pension, and demat accounts; fixed and recurring deposits; and safe deposit lockers, as well as offshore accounts and deposits, and overdrafts against fixed deposits. The company also provides personal, home, car, two-wheeler, business, doctor, educational, gold, consumer, and rural loans; loans against properties, securities, fixed deposits, rental receivables, and assets; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, healthcare/medical equipment and commercial vehicle finance, dealer finance, and term loans. In addition, it offers credit, debit, prepaid, and forex cards; payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, and merchant and cash management services; insurance and investment products. Further, the company provides short term finance, bill discounting, structured finance, export credit, loan repayment, and documents collection services; online and wholesale, mobile, and phone banking services; unified payment interface, immediate payment, national electronic funds transfer, and real time gross settlement services; and channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. It operates branches and automated teller machines in various cities/towns. The company was incorporated in 1994 and is headquartered in Mumbai, India.

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.