LYG vs. NWG
LYG (Lloyds Banking Group plc) and NWG (NatWest Group plc) are both stocks. Both are in the Financial Services sector — LYG in Banks - Regional, NWG in Banks - Diversified. Over the past 10 years, LYG returned 8.00%/yr vs 15.97%/yr for NWG. A 0.76 correlation means they provide meaningful diversification when combined.
Performance
LYG vs. NWG - Performance Comparison
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Returns By Period
In the year-to-date period, LYG achieves a 2.45% return, which is significantly higher than NWG's -5.18% return. Over the past 10 years, LYG has underperformed NWG with an annualized return of 8.00%, while NWG has yielded a comparatively higher 15.97% annualized return.
LYG
- 1D
- -0.19%
- 1M
- -2.39%
- YTD
- 2.45%
- 6M
- 6.89%
- 1Y
- 31.26%
- 3Y*
- 39.69%
- 5Y*
- 20.09%
- 10Y*
- 8.00%
NWG
- 1D
- 0.76%
- 1M
- 0.51%
- YTD
- -5.18%
- 6M
- 0.44%
- 1Y
- 17.10%
- 3Y*
- 43.71%
- 5Y*
- 30.30%
- 10Y*
- 15.97%
LYG vs. NWG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LYG Lloyds Banking Group plc | 2.45% | 103.71% | 20.30% | 14.68% | -9.47% | 33.81% | -40.79% | 36.81% | -28.35% | 30.79% |
NWG NatWest Group plc | -5.18% | 81.29% | 92.31% | -4.69% | 11.23% | 39.24% | -24.92% | 29.18% | -26.25% | 38.16% |
Correlation
The correlation between LYG and NWG is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.88 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.77 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Oct 19, 2007 | 0.76 |
The correlation between LYG and NWG shifts across timeframes, from 0.76 (all time) to 0.88 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
LYG:
$0.45
NWG:
$2.95
LYG:
11.86
NWG:
5.39
LYG:
5.93
NWG:
0.20
LYG:
0.92
NWG:
1.09
LYG:
$65.49B
NWG:
$29.58B
LYG:
$65.49B
NWG:
$16.97B
LYG:
$7.17B
NWG:
$9.10B
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Return for Risk
LYG vs. NWG — Risk / Return Rank
LYG
NWG
LYG vs. NWG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Lloyds Banking Group plc (LYG) and NatWest Group plc (NWG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| LYG | NWG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.57 | ||
| Sortino ratioReturn per unit of downside risk | +0.70 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.11 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.38 | 0.71 | +0.67 |
| Martin ratioReturn relative to average drawdown | 3.85 | 1.80 | +2.05 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| LYG | NWG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.12 | 0.55 | +0.57 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.63 | 0.91 | -0.28 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.22 | 0.42 | -0.20 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.03 | -0.11 | +0.08 |
Drawdowns
LYG vs. NWG - Drawdown Comparison
The maximum LYG drawdown since its inception was -94.84%, roughly equal to the maximum NWG drawdown of -96.96%. Use the drawdown chart below to compare losses from any high point for LYG and NWG.
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Drawdown Indicators
| LYG | NWG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -94.84% | -96.96% | +2.12% |
Max Drawdown (1Y)Largest decline over 1 year | -22.72% | -24.03% | +1.31% |
Max Drawdown (3Y)Largest decline over 3 years | -22.72% | -34.62% | +11.90% |
Max Drawdown (5Y)Largest decline over 5 years | -40.19% | -40.56% | +0.37% |
Max Drawdown (10Y)Largest decline over 10 years | -68.72% | -67.34% | -1.38% |
Current DrawdownCurrent decline from peak | -57.66% | -71.45% | +13.79% |
Average DrawdownAverage peak-to-trough decline | -63.42% | -86.22% | +22.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 8.15% | 9.60% | -1.45% |
Volatility
LYG vs. NWG - Volatility Comparison
Lloyds Banking Group plc (LYG) and NatWest Group plc (NWG) have volatilities of 8.88% and 8.65%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LYG | NWG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.88% | 8.65% | +0.23% |
Volatility (6M)Calculated over the trailing 6-month period | 21.77% | 23.92% | -2.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 28.07% | 31.41% | -3.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 32.06% | 33.53% | -1.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 36.52% | 38.32% | -1.80% |
Dividends
LYG vs. NWG - Dividend Comparison
LYG's dividend yield for the trailing twelve months is around 3.76%, less than NWG's 5.51% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LYG Lloyds Banking Group plc | 3.76% | 3.19% | 5.44% | 5.23% | 4.92% | 2.70% | 0.00% | 5.04% | 6.63% | 6.81% | 5.17% | 2.11% |
NWG NatWest Group plc | 5.51% | 3.69% | 4.36% | 9.42% | 11.57% | 2.74% | 4.59% | 9.75% | 0.91% | 0.00% | 0.00% | 0.00% |
Financials
LYG vs. NWG - Financials Comparison
This section allows you to compare key financial metrics between Lloyds Banking Group plc and NatWest Group plc. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
LYG vs. NWG - Profitability Comparison
LYG - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lloyds Banking Group plc reported a gross profit of 5.18B and revenue of 5.18B. Therefore, the gross margin over that period was 100.0%.
NWG - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, NatWest Group plc reported a gross profit of 4.36B and revenue of 7.39B. Therefore, the gross margin over that period was 59.0%.
LYG - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lloyds Banking Group plc reported an operating income of 2.03B and revenue of 5.18B, resulting in an operating margin of 39.1%.
NWG - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, NatWest Group plc reported an operating income of 2.03B and revenue of 7.39B, resulting in an operating margin of 27.5%.
LYG - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lloyds Banking Group plc reported a net income of 1.53B and revenue of 5.18B, resulting in a net margin of 29.5%.
NWG - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, NatWest Group plc reported a net income of 1.51B and revenue of 7.39B, resulting in a net margin of 20.4%.
Frequently Asked Questions
LYG and NWG have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LYG has higher volatility (8.88%) compared to NWG (8.65%). In terms of maximum drawdown, LYG dropped -94.84% vs NWG's -96.96%.
LYG currently has the higher Sharpe Ratio (1.12 vs 0.55), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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