Contrasting Lloyds Banking Group (LYG) & Itau Corpbanca (ITCB)

Lloyds Banking Group (NYSE:LYG) and Itau Corpbanca (NYSE:ITCB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Insider and Institutional Ownership

1.9% 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, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Lloyds Banking Group and Itau Corpbanca, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lloyds Banking Group 0 3 5 0 2.63
Itau Corpbanca 0 0 1 0 3.00

Dividends

Lloyds Banking Group pays an annual dividend of $0.22 per share and has a dividend yield of 6.5%. Itau Corpbanca pays an annual dividend of $0.13 per share and has a dividend yield of 1.0%. Lloyds Banking Group has increased its dividend for 3 consecutive years. Lloyds Banking Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Lloyds Banking Group has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Itau Corpbanca has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Earnings & Valuation

This table compares Lloyds Banking Group and Itau Corpbanca’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 $33.43 billion 1.83 $5.74 billion N/A N/A
Itau Corpbanca $2.90 billion N/A $275.27 million N/A N/A

Lloyds Banking Group has higher revenue and earnings than Itau Corpbanca.

Profitability

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

Net Margins Return on Equity Return on Assets
Lloyds Banking Group 23.49% 14.65% 0.89%
Itau Corpbanca 8.79% 5.86% 0.70%

Summary

Lloyds Banking Group beats Itau Corpbanca on 11 of the 13 factors compared between the two stocks.

About Lloyds Banking Group

Lloyds Banking Group plc provides banking and financial services under the Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows brands in the United Kingdom and internationally. It operates through three segments: Retail, Commercial Banking, and Insurance and Wealth. The Retail segment offers a range of financial service products, including current accounts, savings accounts, mortgages, motor finance, unsecured consumer loans, leasing solutions, and credit cards to personal and small business customers. The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, term lending, and debt capital markets services to small and medium-sized enterprises, corporates, mid markets, and financial institutions. The Insurance and Wealth segment offers life, home, car, and protection insurance products; pensions and investment products; and advisory services in areas, including investments, planning for retirement, and protection and inheritance tax planning. The company also provides digital, telephony, and mobile services. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom.

About Itau Corpbanca

Itaú CorpBanca provides wholesale and retail banking services. The company offers checking and savings accounts, as well as accepts demand and time deposits; and provides commercial loans, mortgage loans, and consumer loans. It also offers financial advisory, mutual fund management, insurance brokerage, and securities brokerage services; trust portfolio management services, including investment trust management, administration, security, real estate trusts, and fund administration; court and out-of-court collections services for loans; and Internet and mobile banking services. The company has operations in Chile, Colombia, and Panama, as well as has a branch in New York and representative offices in Madrid and Peru. Itaú CorpBanca was founded in 1871 and is headquartered in Santiago, Chile.

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