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The Lloyds share price could cost you a fortune! I’d rather buy this cheap UK share in an ISA

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The 2020 stock market crash has left a lot of UK share prices at historic lows. It’s a situation that creates a brilliant investing opportunity for eagle-eyed bargain hunters. Lloyds Banking Group (LSE: LLOY) is one FTSE 100 stock that’s collapsed in value since the start of the year. But it’s one that could end up costing dip buyers a lot of money, certainly in my opinion.

Our view at The Motley Fool is that UK share investors should buy stocks with a view to holding them for a bare minimum of five years. That way you can be confident the value of your investments will recover from any temporary volatility and deliver some terrific returns. Studies show the long-term investor enjoys an average annual return of at least 8%.

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But what about if you want to sell your Lloyds shares before that time? Or find yourself in a position where you’re forced to offload them? Well, the mechanics of the economic cycle means you may struggle to make any money from your investment.

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Lloyds to lag?

Banking stocks tend to perform at their strongest during the late stage of the economic cycle. So Lloyds investors are likely to have to wait some time from today before enjoying some meaningful capital gains. Clearly, the UK economy has some way to go before reaching that stage. And, in the meantime, there are hundreds upon hundreds of other UK shares that could surge in price as Lloyds investors sit waiting for the recovery.

In fact, I worry that Lloyds shares could be worth a fraction of what they’re currently worth not long from now. The FTSE 100 bank has lost almost two-thirds of its value over the past three years on a blend of Covid-19-related tensions, Brexit worries, and the impact of ultra-low interest rates. With all these issues still in play things look pretty bleak for the Lloyds share price, in my opinion.

This UK share could make you a fortune

Why take a chance with Lloyds then, when there are so many other quality UK shares to choose from today? For instance, those seeking to buy high-quality banking shares would be better off with TBC Bank Group.

Firstly, its shares provide better value than those of Lloyds, the business sporting a forward price-to-earnings (P/E) ratio of 8 times. And, unlike the British bank, TBC offers still offers dividends to investors and the yield sits at a handy 1.2%.

The Georgian economy grew at almost 5% a year in the last decade, according to the World Bank. And I’m backing it to grow faster than the UK economy over the long term too, delivering better profits growth for TBC in that time. This isn’t the only reason why TBC’s a top pick today though. Recent expansion into Uzbekistan offers plenty for investors to get excited about. As does the company’s huge investment in the realm of digital banking.

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While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.