Ally Financial (ALLY) Competitors

Lloyds Banking Group (NYSE:LYG) and Ally Financial (NYSE:ALLY) are both large-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, media sentiment, profitability, dividends, analyst recommendations, risk, valuation, community ranking and institutional ownership.

Is LYG or ALLY more profitable?

Lloyds Banking Group has a net margin of 10.89% compared to Ally Financial's net margin of 10.84%. Lloyds Banking Group's return on equity of 9.81% beat Ally Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lloyds Banking Group	10.89%	9.81%	0.51%
Ally Financial	10.84%	8.39%	0.51%

Is LYG or ALLY a better dividend stock?

Lloyds Banking Group pays an annual dividend of $0.11 per share and has a dividend yield of 3.9%. Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Lloyds Banking Group pays out 28.2% of its earnings in the form of a dividend. Ally Financial pays out 48.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lloyds Banking Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts rate LYG or ALLY?

Lloyds Banking Group currently has a consensus price target of $2.75, indicating a potential downside of 3.68%. Ally Financial has a consensus price target of $42.53, indicating a potential upside of 15.07%. Given Ally Financial's stronger consensus rating and higher possible upside, analysts clearly believe Ally Financial is more favorable than Lloyds Banking Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lloyds Banking Group	0 Sell rating(s)	7 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.30
Ally Financial	1 Sell rating(s)	8 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.44

Does the media refer more to LYG or ALLY?

In the previous week, Ally Financial had 21 more articles in the media than Lloyds Banking Group. MarketBeat recorded 23 mentions for Ally Financial and 2 mentions for Lloyds Banking Group. Ally Financial's average media sentiment score of 0.54 beat Lloyds Banking Group's score of 0.15 indicating that Ally Financial is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lloyds Banking Group	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Ally Financial	8 Very Positive mention(s)	2 Positive mention(s)	10 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals have more ownership in LYG or ALLY?

2.2% of Lloyds Banking Group shares are held by institutional investors. Comparatively, 88.8% of Ally Financial shares are held by institutional investors. 0.0% of Lloyds Banking Group shares are held by company insiders. Comparatively, 0.7% of Ally Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Does the MarketBeat Community favor LYG or ALLY?

Lloyds Banking Group received 149 more outperform votes than Ally Financial when rated by MarketBeat users. Likewise, 67.15% of users gave Lloyds Banking Group an outperform vote while only 64.30% of users gave Ally Financial an outperform vote.

Company	Underperform	Outperform
Lloyds Banking Group	Outperform Votes 918 67.15%	Underperform Votes 449 32.85%
Ally Financial	Outperform Votes 769 64.30%	Underperform Votes 427 35.70%

Which has more volatility & risk, LYG or ALLY?

Lloyds Banking Group has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Which has stronger earnings & valuation, LYG or ALLY?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lloyds Banking Group	$44.03B	0.98	$6.79B	$0.39	7.32
Ally Financial	$8.21B	1.37	$1.02B	$2.50	14.79

Summary

Ally Financial beats Lloyds Banking Group on 11 of the 19 factors compared between the two stocks.