LYG vs. RWT

Last updated Apr 2, 2026

Compare and contrast key facts about Lloyds Banking Group plc (LYG) and Redwood Trust, Inc. (RWT).

Performance

LYG vs. RWT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Lloyds Banking Group plc (LYG) and Redwood Trust, Inc. (RWT). The values are adjusted to include any dividend payments, if applicable.

LYG vs. RWT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LYG Lloyds Banking Group plc	-1.51%	103.71%	20.30%	14.68%	-9.47%	33.81%	-40.79%	36.81%	-28.35%	30.79%
RWT Redwood Trust, Inc.	5.45%	-4.08%	-2.60%	21.61%	-42.26%	60.13%	-42.70%	18.16%	9.40%	4.49%

Fundamentals

Market Cap LYG : $78.03B RWT : $713.85M
EPS LYG : $0.31 RWT : -$0.61
PS Ratio LYG : 1.21 RWT : 3.00
PB Ratio LYG : 1.86 RWT : 0.73
Total Revenue (TTM) LYG : $65.00B RWT : $243.15M
Gross Profit (TTM) LYG : $65.00B RWT : $154.79M
EBITDA (TTM) LYG : $6.66B RWT : $733.18M

Returns By Period

In the year-to-date period, LYG achieves a -1.51% return, which is significantly lower than RWT's 5.45% return. Over the past 10 years, LYG has outperformed RWT with an annualized return of 7.63%, while RWT has yielded a comparatively lower 0.78% annualized return.

LYG

• 1D: 3.78%
• 1M: -4.57%
• YTD: -1.51%
• 6M: 15.49%
• 1Y: 43.24%
• 3Y*: 37.94%
• 5Y*: 22.84%
• 10Y*: 7.63%

RWT

• 1D: 0.53%
• 1M: -4.25%
• YTD: 5.45%
• 6M: 2.21%
• 1Y: 6.05%
• 3Y*: 5.05%
• 5Y*: -2.17%
• 10Y*: 0.78%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Return for Risk

LYG vs. RWT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LYG

LYG Risk / Return Rank: 79
LYG Sharpe Ratio Rank: 83
LYG Sortino Ratio Rank: 77
LYG Omega Ratio Rank: 77
LYG Calmar Ratio Rank: 75
LYG Martin Ratio Rank: 82

RWT

RWT Risk / Return Rank: 45
RWT Sharpe Ratio Rank: 46
RWT Sortino Ratio Rank: 43
RWT Omega Ratio Rank: 42
RWT Calmar Ratio Rank: 48
RWT Martin Ratio Rank: 48

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LYG vs. RWT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Lloyds Banking Group plc (LYG) and Redwood Trust, Inc. (RWT). 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	RWT	Difference
Sharpe ratio Return per unit of total volatility	1.49	0.15	+1.34
Sortino ratio Return per unit of downside risk	1.99	0.54	+1.46
Omega ratio Gain probability vs. loss probability	1.27	1.07	+0.20
Calmar ratio Return relative to maximum drawdown	1.89	0.29	+1.60
Martin ratio Return relative to average drawdown	6.59	0.64	+5.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LYG vs. RWT - Sharpe Ratio Comparison

The current LYG Sharpe Ratio is 1.49, which is higher than the RWT Sharpe Ratio of 0.15. The chart below compares the historical Sharpe Ratios of LYG and RWT, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	LYG	RWT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.49	0.15	+1.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	-0.06	+0.78
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.21	0.02	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	-0.03	0.12	-0.15

Correlation

The correlation between LYG and RWT is 0.35, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

LYG vs. RWT - Dividend Comparison

LYG's dividend yield for the trailing twelve months is around 3.24%, less than RWT's 12.77% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LYG Lloyds Banking Group plc	3.24%	3.19%	5.44%	5.23%	4.92%	2.70%	0.00%	5.04%	6.63%	6.81%	5.17%	2.11%
RWT Redwood Trust, Inc.	12.77%	13.02%	10.26%	9.58%	13.61%	5.91%	8.26%	7.26%	7.83%	7.56%	7.36%	8.48%

Drawdowns

LYG vs. RWT - Drawdown Comparison

The maximum LYG drawdown since its inception was -94.84%, which is greater than RWT's maximum drawdown of -88.91%. Use the drawdown chart below to compare losses from any high point for LYG and RWT.

Drawdown Indicators

	LYG	RWT	Difference
Max Drawdown Largest peak-to-trough decline	-94.84%	-88.91%	-5.93%
Max Drawdown (1Y) Largest decline over 1 year	-22.72%	-19.91%	-2.81%
Max Drawdown (5Y) Largest decline over 5 years	-40.19%	-55.83%	+15.64%
Max Drawdown (10Y) Largest decline over 10 years	-68.72%	-85.40%	+16.68%
Current Drawdown Current decline from peak	-59.30%	-55.63%	-3.67%
Average Drawdown Average peak-to-trough decline	-63.47%	-45.52%	-17.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.50%	8.95%	-2.45%

Volatility

LYG vs. RWT - Volatility Comparison

The current volatility for Lloyds Banking Group plc (LYG) is 10.94%, while Redwood Trust, Inc. (RWT) has a volatility of 12.39%. This indicates that LYG experiences smaller price fluctuations and is considered to be less risky than RWT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LYG	RWT	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.94%	12.39%	-1.45%
Volatility (6M) Calculated over the trailing 6-month period	20.13%	29.42%	-9.29%
Volatility (1Y) Calculated over the trailing 1-year period	29.18%	40.24%	-11.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.87%	35.03%	-3.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.47%	49.00%	-12.53%

Financials

LYG vs. RWT - Profitability Comparison

The chart below illustrates the profitability comparison between Lloyds Banking Group plc and Redwood Trust, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

LYG - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Lloyds Banking Group plc reported a gross profit of 50.75B and revenue of 50.75B. Therefore, the gross margin over that period was 100.0%.

RWT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Redwood Trust, Inc. reported a gross profit of 0.00 and revenue of 61.30M. Therefore, the gross margin over that period was 0.0%.

LYG - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Lloyds Banking Group plc reported an operating income of 1.98B and revenue of 50.75B, resulting in an operating margin of 3.9%.

RWT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Redwood Trust, Inc. reported an operating income of 0.00 and revenue of 61.30M, resulting in an operating margin of 0.0%.

LYG - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Lloyds Banking Group plc reported a net income of 1.27B and revenue of 50.75B, resulting in a net margin of 2.5%.

RWT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Redwood Trust, Inc. reported a net income of 3.00M and revenue of 61.30M, resulting in a net margin of 4.9%.