WallStSmart

Lloyds Banking Group PLC ADR (LYG)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 41% more annual revenue ($26.35B vs $18.63B). USB leads profitability with a 28.7% profit margin vs 25.0%. LYG appears more attractively valued with a PEG of 0.96. LYG earns a higher WallStSmart Score of 77/100 (B+).

LYG

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 10.0Quality: 5.8
Piotroski: 4/9

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LYGUndervalued (+66.5%)

Margin of Safety

+66.5%

Fair Value

$17.32

Current Price

$5.11

$12.21 discount

UndervaluedFair: $17.32Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LYG6 strengths · Avg: 9.0/10
Operating MarginProfitability
40.6%10/10

Strong operational efficiency at 40.6%

EPS GrowthGrowth
146.4%10/10

Earnings expanding 146.4% YoY

Market CapQuality
$73.74B9/10

Large-cap with strong market position

Profit MarginProfitability
25.0%9/10

Keeps 25 of every $100 in revenue as profit

PEG RatioValuation
0.968/10

Growing faster than its price suggests

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

LYG2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.853/10

Elevated debt levels

Free Cash FlowQuality
$-622.00M2/10

Negative free cash flow — burning cash

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : LYG

The strongest argument for LYG centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 25.0% and operating margin at 40.6%. Revenue growth of 14.4% demonstrates continued momentum.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.

Bear Case : LYG

The primary concerns for LYG are Debt/Equity, Free Cash Flow. Debt-to-equity of 1.85 is elevated, increasing financial risk.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

USB carries more volatility with a beta of 1.04 — expect wider price swings.

LYG is growing revenue faster at 14.4% — sustainability is the question.

USB generates stronger free cash flow (2.8B), providing more financial flexibility.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LYG scores higher overall (77/100 vs 75/100), backed by strong 25.0% margins and 14.4% revenue growth. USB offers better value entry with a 75.8% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Lloyds Banking Group PLC ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Lloyds Banking Group plc, offers a range of banking and financial services in the UK and internationally. The company is headquartered in London, the United Kingdom.

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U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

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