Should I Buy Royal Bank of Scotland Group plc (ADR) (RBS) or Lloyds Banking Group PLC (ADR) (LYG)?

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Which share should I buy?
For me, the main point in buying RBS or Lloyds is because you want to profit from the recovery potential of the shares. If you want to invest in a healthy, dividend-paying bank, then you are more likely to buy Barclays PLC (ADR) (NYSE:BCS), HSBC Holdings plc (ADR) (NYSE:HBC), or Standard Chartered PLC (LON:STAN) instead.

On this basis, I would buy RBS, because its less advanced recovery makes it a more compelling value opportunity than Lloyds — even though it could still suffer further problems on its route back to full health.

The article Should I Buy Royal Bank of Scotland or Lloyds Banking Group? originally appeared on Fool.com and is written by Roland Head.

Roland owns shares in HSBC but does not own shares in any of the other companies mentioned in this article. The Motley Fool owns shares in Standard Chartered.

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