Am I crazy to consider this FTSE 100 bank stock more risky than Rolls-Royce shares?

Rolls-Royce stocks have largely dominated the UK ‘growth’ narrative in recent years. But one little-known bank stock has enjoyed a remarkably similar trend.

Lion Finance (LSE: BGEO), formerly Bank of Georgia, has closely followed Rolls for much of the past five years.

But that’s where the similarities end. If you look closely, the two companies are currently in very different financial positions. As many growth hunters ask if Rolls’ opportunity has passed, I wonder if Lion Finance is a hidden gem waiting to be discovered?

Growth rates and market history

To understand the greatness of these two companies, we have to look beyond the hype. Over the past five years, Rolls-Royce has delivered a return of over 1,000%, slightly surpassing Lion Finance’s return of 950%.

However, if you extend that lens back ten years, the narrative changes dramatically. Lion Finance has returned around 660% and Rolls-Royce is sitting below 400% (as of 30 April).

This tells us that while the Rolls have grabbed the headlines of late, the Lion has been a consistent, long-term combination.

Importantly, these returns are not just market noise, they focus on the business’s core performance. Roll’s recent expansion has been fueled by dramatic changes in its aerospace business and strong defense contracts.

Lion Finance, on the other hand, has been quietly compounding profits at a rapid pace. The company’s earnings rose from £1.37 per share back in 2020 to an impressive £13.87 in 2025.

That kind of earnings growth is exactly what gasoline prices share over the long term, proving that both companies are firing on all cylinders.

So which is the better option?

When you dig into the numbers, it’s clear why Lion has caught my attention as a stock to consider right now. It currently trades at a price-to-earnings (P/E) ratio of 7.89 and a price-to-book (P/B) ratio of 1.99. That makes it look a lot cheaper than a Rolls-Royce by almost any standard metric.

However, a low price tag is not a free lunch. Investors should also consider these factors:

• Valuation: while current metrics indicate a reduction in value, it also suggests that investors should be aware of potential risks.
• Low yield: at only 2.63%, we offer low income investors. However, recent budget growth suggests it intends to improve this.
• Geopolitical risk: this is the elephant in the room. As a major financial entity operating in Georgia, the company is always highly vulnerable to the region’s political instability.

An important point

If you want to trade, Lion Finance looks very attractive on paper. But as always, that discount is the market’s way of pricing potential risk.

In the end, Rolls-Royce remains the safer, more reliable choice for many. It is supported by important government contracts and has a deeply established local history that provides a natural defense channel.

The lion represents a high-risk/high-reward game, but it’s worth considering as a small stake if you have the stomach for it.

As with any investment, never forget the importance of proper risk management and always keeping your portfolio well diversified.