Contrasting Lloyds Banking Group (NYSE:LYG) and Oxford Bank (OTCMKTS:OXBC)

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

Insider and Institutional Ownership

2.2% of Lloyds Banking Group shares are owned by institutional investors. Comparatively, 4.5% of Oxford Bank shares are owned by institutional investors. 0.0% of Lloyds Banking Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lloyds Banking Group	13.41%	10.35%	0.54%
Oxford Bank	N/A	N/A	N/A

Valuation & Earnings

This table compares Lloyds Banking Group and Oxford Bank’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lloyds Banking Group	$44.03 billion	0.99	$6.79 billion	$0.38	7.24
Oxford Bank	N/A	N/A	$12.06 million	$4.87	6.48

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

Analyst Ratings

This is a summary of recent ratings for Lloyds Banking Group and Oxford Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lloyds Banking Group	1	3	3	0	2.29
Oxford Bank	0	0	0	0	N/A

Lloyds Banking Group presently has a consensus price target of $73.44, indicating a potential upside of 2,570.45%. Given Lloyds Banking Group’s higher possible upside, analysts clearly believe Lloyds Banking Group is more favorable than Oxford Bank.

Risk and Volatility

Lloyds Banking Group has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Oxford Bank has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Summary

Lloyds Banking Group beats Oxford Bank on 10 of the 12 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 Oxford Bank

Oxford Bank Corporation provides banking products and services to various customers in Michigan. Its deposit products include savings, checking, and individual retirement accounts, as well as certificates of deposit. The company's loan portfolio comprises home mortgage, home equity, auto, student, term, commercial real estate, and small business administration loans, as well as lines of credit. It also offers cash management, merchant card, remote deposit capture, payroll, overdraft protection, wire transfer, night depository, and notary services, as well as safe deposit box and interactive teller machine services; online, telephone, and mobile banking services; debit and credit cards; and insurance products. The company operates its branches in Clarkston, Davison, Dryden, Lake Orion, Ortonville, Oxford, and Oakland. Oxford Bank Corporation was founded in 1884 and is based in Oxford, Michigan.