Lloyds Banking Group vs Gallagher

This page compares Lloyds Banking Group plc and Gallagher (Arthur J Gallagher & Co.). It covers business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.

This page compares Lloyds Banking Group plc and Gallagher (Arthur J Gallagher & Co.). It covers business models, financial performance, and market context in a neutral, accessible way. Educational con...

Comparison Snapshot

Key Financial Metrics

LYG

Metric

AJG

$80.95B

Market Cap

$65.45B

2.35%

Potential Profit

20.76%

Hold

Analyst Rating

Buy

Why It's Moving

Lloyds Shares Smash Through £1 as Barclays Fuels Bullish Momentum for 2026

Barclays raised its 12-month target to 120p from 100p, forecasting 70% EPS growth by 2028—double the sector average—driven by strong fundamentals.
Shares trade at a compelling forward P/E below 7x for 2028, undercutting European banking peers at over 9x, signaling undervaluation.
On January 19, Lloyds detailed 300 million unallotted shares from employee plans after UK rules ended block listings, streamlining future allotments.

Sentiment:

🐃Bullish

Lloyds Shares Smash Through £1 as Barclays Fuels Bullish Momentum for 2026

Barclays raised its 12-month target to 120p from 100p, forecasting 70% EPS growth by 2028—double the sector average—driven by strong fundamentals.
Shares trade at a compelling forward P/E below 7x for 2028, undercutting European banking peers at over 9x, signaling undervaluation.
On January 19, Lloyds detailed 300 million unallotted shares from employee plans after UK rules ended block listings, streamlining future allotments.

Sentiment:

🐃Bullish

Investment Analysis

Lloyds Banking Group

LYG

Pros

Lloyds Banking Group raised its 2025 profitability guidance due to lower loan loss provisions and higher net interest income.
The bank benefits from a strong UK deposit base and an expanding net interest margin supported by current high base rates.
Lloyds has shown mortgage volume growth and low, stable arrears, indicating resilient lending performance.

Considerations

The ongoing UK motor finance investigation triggered an £800 million provision, impacting near-term earnings.
Lloyds’ valuation metrics suggest limited upside and potential overvaluation, with a moderate price-to-earnings ratio relative to peers.
Despite recent upgrades, recent trading volumes have been lower than average, possibly indicating reduced investor confidence.

Gallagher

AJG

Pros

Arthur J Gallagher has a diversified insurance brokerage and risk management business with consistent global demand.
Gallagher has shown resilience through steady revenue growth driven by acquisitions and expanded client services.
The company operates in multiple geographies, reducing dependence on any single regulatory or economic environment.

Considerations

Exposure to insurance underwriting and risk markets introduces sensitivity to economic cycles and claims fluctuations.
Profitability can be pressured by rising compensation costs and regulatory compliance expenses.
Integration risks from frequent acquisitions may impact operational efficiency and margin stability.

About The Companies

Lloyds Banking Group (LYG)

Lloyds Banking Group plc (ticker LYG) is one of the United Kingdom’s largest retail and commercial banks, with a market capitalisation around $66 billion. Its core franchises include current accounts, mortgages, SME lending and insurance sold through its UK branch network and digital channels. Lloyds’ earnings are sensitive to UK interest rates and the health of the domestic economy: higher rates can lift net interest margins, while a downturn could increase loan impairments. The group has invested in modernising digital platforms and cost efficiency programmes to protect margins, and it must meet UK regulatory capital and conduct standards. Investors should weigh steady retail cash flows and scale against cyclical credit risk, regulatory scrutiny and competitive pressures. Past dividends have been an important part of shareholder returns, but payouts depend on profits and regulator guidance. This is general educational information, not personalised investment advice; values can fall as well as rise.

Gallagher (AJG)

Arthur J. Gallagher & Co. (AJG) is a leading global player in the insurance and risk management world. Headquartered in the US, it operates in two main segments: brokerage and risk management. The brokerage side advises businesses, non-profits, and public sector organisations on their insurance needs, helping them find the right cover. It also consults on employee benefits programmes. The risk management segment is for organisations that self-insure, providing services like claims management and loss control consulting. By serving a wide variety of clients with essential financial services, AJG has established a significant footprint in the industry. For investors, it represents a company deeply embedded in the mechanics of how businesses and organisations manage financial risk. As with any investment, it's important to remember that values can go down as well as up.

Lloyds Banking Group (LYG) Next Earnings Date

Lloyds Banking Group (LYG) is estimated to report its next earnings on February 19, 2026. This earnings release will cover the fourth quarter of fiscal year 2025. Multiple financial data providers consistently project this date based on the company's historical earnings release patterns. Investors should monitor for any official announcement from Lloyds that may confirm or adjust this estimated date.

Lloyds Banking Group (LYG) Next Earnings Date

Lloyds Banking Group (LYG) is estimated to report its next earnings on February 19, 2026. This earnings release will cover the fourth quarter of fiscal year 2025. Multiple financial data providers consistently project this date based on the company's historical earnings release patterns. Investors should monitor for any official announcement from Lloyds that may confirm or adjust this estimated date.

Which Baskets Do They Appear In?

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Published: October 16, 2025

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Banking M&A Opportunities Explained

Italian banking giant UniCredit has signaled its potential sale of a major stake in Germany's Commerzbank, possibly to a non-EU buyer. This move could catalyze a wave of mergers and acquisitions across the European banking sector, creating opportunities for investment banks and other financial institutions poised for consolidation.

Published: September 14, 2025

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Defensive Banking Amid Inflation Concerns

A sharp drop in U.S. consumer sentiment, fueled by rising inflation and trade policy concerns, signals a potential slowdown in consumer spending. This creates an investment opportunity in defensive sectors like banking, which may prove more resilient than consumer-focused industries during periods of economic uncertainty.

Published: August 16, 2025

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Which Baskets Do They Appear In?

Banking Liquidity Strain: Risks and Resilient Options

U.S. banks have significantly increased their borrowing from the Fed's emergency lending facility, signaling potential stress in short-term funding markets. This theme focuses on resilient financial institutions and technology providers that can help navigate or benefit from these tightening liquidity conditions.

Published: October 16, 2025

Explore Basket

Banking M&A Opportunities Explained

Italian banking giant UniCredit has signaled its potential sale of a major stake in Germany's Commerzbank, possibly to a non-EU buyer. This move could catalyze a wave of mergers and acquisitions across the European banking sector, creating opportunities for investment banks and other financial institutions poised for consolidation.

Published: September 14, 2025

Explore Basket

Defensive Banking Amid Inflation Concerns

A sharp drop in U.S. consumer sentiment, fueled by rising inflation and trade policy concerns, signals a potential slowdown in consumer spending. This creates an investment opportunity in defensive sectors like banking, which may prove more resilient than consumer-focused industries during periods of economic uncertainty.

Published: August 16, 2025

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European Banking M&A

UniCredit's major stake in Commerzbank signals the start of European banking consolidation. Our experts have selected companies positioned to benefit from this wave, including potential M&A targets and the investment banks that will earn fees from these deals.

Published: July 10, 2025

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UK Banking Consolidation

Santander's £2.65 billion acquisition of TSB is reshaping the UK banking sector. This collection features companies positioned to benefit from this major consolidation, including direct competitors, potential M&A targets, and the investment banks facilitating these industry-changing deals.

Published: July 2, 2025

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European Financial Consolidation

BNP Paribas's acquisition of AXA Investment Managers could trigger a wave of mergers in European finance. These carefully selected stocks represent potential buyers and targets in banking, insurance, and asset management as the industry reshapes for the future.

Published: July 2, 2025

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Banks

These carefully selected banking stocks represent the financial institutions that keep the global economy running. Our professional analysts have handpicked these companies for their role in the digital transformation of financial services and their potential for steady returns.

Published: May 28, 2025

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Comparison Snapshot

Why It's Moving

Lloyds Shares Smash Through £1 as Barclays Fuels Bullish Momentum for 2026

Lloyds Shares Smash Through £1 as Barclays Fuels Bullish Momentum for 2026