Lloyds vs RBS

markwilkinson

I wonder if someone could answer what is probably a very simple question.

Lloyds shares are around 80p to purchase (currently). Lloyds, to my mind has been pretty well since the bailout. RBS havnt been doing particularly well, and reading the news a few minutes ago its being reported they could post an £8 billion loss, yet their shares 330p?

Lloyds still seem good value to me.

Linton

The absolute value of a share means nothing. What matters is the total number of shares X the value of one share. So you could have the same valued company at 10M shares at £1 or 1M shares at £10.

Wilkins

Not quite sure what your point is. RBS shares have lost 95% of their value since the spring of 2007 whereas Lloyds have lost only about 85% and have performed much better than the former recently.

lvader

Wilkins wrote: »

Not quite sure what your point is. RBS shares have lost 95% of their value since the spring of 2007 whereas Lloyds have lost only about 85% and have performed much better than the former recently.

You can really compare current share prices to pre crisis levels, too much has changed, including the number of shares.

Wilkins

lvader wrote: »

You can really compare current share prices to pre crisis levels, too much has changed, including the number of shares.

Not quite sure what your point is. Those figures take account of the share capital reorganisations. But, yes, they are very different businesses now.

Thrugelmir

markwilkinson wrote: »

Lloyds still seem good value to me.

Wait for the 2013 results. Rumour is that is there are yet more provisions on the way.

HSBC and Standard Chartered offer better value , plus dividend yields over 4%.

lvader

Wilkins wrote: »

Not quite sure what your point is. Those figures take account of the share capital reorganisations. But, yes, they are very different businesses now.

They don't take into account issuing of new shares, something that was done extensively by both banks. Look at the market cap, how much did you think they were worth pre crisis?

markwilkinson

Wilkins wrote: »

Not quite sure what your point is. RBS shares have lost 95% of their value since the spring of 2007 whereas Lloyds have lost only about 85% and have performed much better than the former recently.

Ok il put it a different way, why is RBS valued at 4 times that of Lloyds? Greater asset base? They still prove to be more of a liability to the tax payer.

lvader

markwilkinson wrote: »

Ok il put it a different way, why is RBS valued at 4 times that of Lloyds? Greater asset base? They still prove to be more of a liability to the tax payer.

Because share price is irrelevant when comparing companies. Market Cap is what you could compare, Lloyds is worth about £59bn, RBS £21bn.

Imma_Number

lvader wrote: »

Because share price is irrelevant when comparing companies. Market Cap is what you could compare, Lloyds is worth about £59bn, RBS £21bn.

From Yahoo just now:
http://uk.finance.yahoo.com/q?s=LLOY.L
Lloyds: 40.73bn

http://uk.finance.yahoo.com/q?s=RBS.L
RBS: 37.28bn

lvader

Imma_Number wrote: »

From Yahoo just now:
http://uk.finance.yahoo.com/q?s=LLOY.L
Lloyds: 40.73bn

http://uk.finance.yahoo.com/q?s=RBS.L
RBS: 37.28bn

Could be, my figures came from iii.

Google has completely different figures yet again, so they are probably all wrong.