LYG vs. NWG: Lloyds Banking vs. NatWest Stock Comparison
How do Lloyds Banking (LYG) and NatWest (NWG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Lloyds Banking (LYG) and NatWest (NWG) are both classified in the Diversified Banks sub-industry within the broader Banks industry, placing them in the closest GICS peer bucket.
Both Lloyds Banking (LYG) and NatWest (NWG) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.
| Profile Item | LYG | NWG |
|---|---|---|
| Name | Lloyds Banking Group plc ADR | NatWest Group plc Sponsored ADR |
| Country/Region | United Kingdom | United Kingdom |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Banks | Banks |
| GICS Industry | Banks | Banks |
| GICS Sub-Industry | Diversified Banks | Diversified Banks |
| Market Capitalization | 72.69 billion USD | 61.54 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 28, 2001 | October 18, 2007 |
| Security Type | ADR | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | LYG | NWG |
|---|---|---|
| Total Return (1Y) | 12.27% | 7.03% |
| Total Return (3Y, Annualized) | 43.57% | 59.12% |
| Total Return (5Y, Annualized) | 20.88% | 30.15% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | LYG | NWG |
|---|---|---|
| Volatility (1Y, Annualized) | 30.68% | 33.39% |
| Beta (5Y) | 0.88 | 0.96 |
| Max Drawdown (5Y) | -40.17% | -40.66% |
| Avg. Volume (3M) | 16.52M | 3.73M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | LYG | NWG |
|---|---|---|
| Sharpe Ratio (1Y) | 0.26 | 0.08 |
| Sortino Ratio (1Y) | 0.39 | 0.12 |
Profitability
ROE (TTM)
Both Lloyds Banking (LYG) at 13.69% and NatWest (NWG) at 14.58% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.
LYG
Banks industry group
13.69%
- Max
- 19.84%
- LYG
- 13.69%
- Q3
- 13.67%
- Median
- 11.49%
- Q1
- 9.50%
- Min
- 3.64%
NWG
Banks industry group
14.58%
- Max
- 19.84%
- NWG
- 14.58%
- Q3
- 13.67%
- Median
- 11.49%
- Q1
- 9.50%
- Min
- 3.64%
Net Margin (TTM)
NatWest (NWG) at 36.93% retains a top-quartile share of revenue as profit, ahead of Lloyds Banking (LYG) at 30.61%, which keeps about the industry-typical share.
LYG
Banks industry group
30.61%
- Max
- 47.19%
- Q3
- 35.25%
- Median
- 31.21%
- LYG
- 30.61%
- Q1
- 27.11%
- Min
- 14.93%
NWG
Banks industry group
36.93%
- Max
- 47.19%
- NWG
- 36.93%
- Q3
- 35.25%
- Median
- 31.21%
- Q1
- 27.11%
- Min
- 14.93%
Operating Margin (TTM)
Neither side reports a meaningful operating margin: for Lloyds Banking (LYG) in Banks and NatWest (NWG) in Banks, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.
Profitability Metrics
| Metric | LYG | NWG |
|---|---|---|
| ROE (TTM) | 13.69% | 14.58% |
| ROA (TTM) | 0.65% | 0.85% |
| Net Margin (TTM) | 30.61% | 36.93% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Both Lloyds Banking (LYG) at 7.66% and NatWest (NWG) at 13.35% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Lloyds Banking (LYG) at 11.29% and NatWest (NWG) at 26.93% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | LYG | NWG |
|---|---|---|
| Revenue Growth (YoY) | 7.66% | 13.35% |
| Revenue Growth (3Y CAGR) | 7.66% | 7.55% |
| EPS Growth (YoY) | 11.29% | 26.93% |
| EPS Growth (3Y CAGR) | -1.41% | 26.12% |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Lloyds Banking (LYG) in Banks and NatWest (NWG) in Banks both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for both: Lloyds Banking (LYG) in Banks and NatWest (NWG) in Banks run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.
Financial Strength Metrics
| Metric | LYG | NWG |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
NatWest (NWG) at 2.19% pays a yield in its industry’s typical range, while Lloyds Banking (LYG) at 0.77% falls in the bottom quartile of its peers.
LYG
Banks industry group
0.77%
- Max
- 5.79%
- Q3
- 3.18%
- Median
- 2.39%
- Q1
- 1.20%
- LYG
- 0.77%
- Min
- 0.00%
NWG
Banks industry group
2.19%
- Max
- 5.79%
- Q3
- 3.18%
- Median
- 2.39%
- NWG
- 2.19%
- Q1
- 1.20%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Lloyds Banking (LYG) at 41.85% and NatWest (NWG) at 47.43% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.
LYG
Banks industry group
41.85%
- Max
- 70.75%
- LYG
- 41.85%
- Q3
- 41.28%
- Median
- 29.26%
- Q1
- 18.98%
- Min
- 0.00%
NWG
Banks industry group
47.43%
- Max
- 70.75%
- NWG
- 47.43%
- Q3
- 41.28%
- Median
- 29.26%
- Q1
- 18.98%
- Min
- 0.00%
Dividend Metrics
| Metric | LYG | NWG |
|---|---|---|
| Dividend Yield (TTM) | 0.77% | 2.19% |
| Dividend Payout Ratio (TTM) | 41.85% | 47.43% |
Valuation
P/E Ratio (TTM)
Both Lloyds Banking (LYG) at 9.79 and NatWest (NWG) at 7.84 sit in the cheaper earnings-multiple quartile for P/E ratio, with the market paying less for a dollar of trailing earnings than it pays for typical peers.
LYG
Banks industry group
9.79
- Max
- 18.16
- Q3
- 13.75
- Median
- 11.81
- Q1
- 10.64
- LYG
- 9.79
- Min
- 6.49
NWG
Banks industry group
7.84
- Max
- 18.16
- Q3
- 13.75
- Median
- 11.81
- Q1
- 10.64
- NWG
- 7.84
- Min
- 6.49
P/S Ratio (TTM)
P/S ratio is set aside for both Lloyds Banking (LYG) in Banks and NatWest (NWG) in Banks: without a conventional revenue line, pricing per dollar of sales isn’t meaningful, and book- or earnings-based multiples make the better comparison.
P/B Ratio (MRQ)
On P/B ratio, both Lloyds Banking (LYG) at 1.19 and NatWest (NWG) at 1.20 are valued close to their industries’ norm against book — neither stands out from peers.
LYG
Banks industry group
1.19
- Max
- 2.28
- Q3
- 1.58
- Median
- 1.32
- LYG
- 1.19
- Q1
- 1.10
- Min
- 0.59
NWG
Banks industry group
1.20
- Max
- 2.28
- Q3
- 1.58
- Median
- 1.32
- NWG
- 1.20
- Q1
- 1.10
- Min
- 0.59
Valuation Metrics
| Metric | LYG | NWG |
|---|---|---|
| P/E Ratio (TTM) | 9.79 | 7.84 |
| P/S Ratio (TTM) | -- | -- |
| P/B Ratio (MRQ) | 1.19 | 1.20 |
| Free Cash Flow Yield (TTM) | -- | -- |