NatWest Group (NWG) vs. Its Peers Head-To-Head Review

NatWest Group (NYSE:NWG) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its rivals? We will compare NatWest Group to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, dividends, earnings, profitability and valuation.

Valuation and Earnings

This table compares NatWest Group and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NatWest Group	$38.91 billion	$7.69 billion	7.74
NatWest Group Competitors	$9.95 billion	$2.42 billion	17.38

NatWest Group has higher revenue and earnings than its rivals. NatWest Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

NatWest Group has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, NatWest Group’s rivals have a beta of 0.52, suggesting that their average stock price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NatWest Group and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NatWest Group	0	3	6	1	2.80
NatWest Group Competitors	7464	30192	27759	1465	2.35

As a group, “Banks” companies have a potential upside of 15.13%. Given NatWest Group’s rivals higher probable upside, analysts plainly believe NatWest Group has less favorable growth aspects than its rivals.

Profitability

This table compares NatWest Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NatWest Group	19.61%	13.75%	0.80%
NatWest Group Competitors	15.66%	9.44%	0.93%

Institutional & Insider Ownership

1.3% of NatWest Group shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

NatWest Group pays an annual dividend of $0.63 per share and has a dividend yield of 4.1%. NatWest Group pays out 31.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. NatWest Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

NatWest Group beats its rivals on 8 of the 15 factors compared.

NatWest Group Company Profile

NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Private Banking, and Commercial & Institutional segments. The Retail Banking segment offers a range of banking products and related financial services, such as current accounts, mortgages, personal unsecured lending, and personal deposits, as well as mobile and online banking services. The Private Banking segment provides private banking and wealth management products for high-net-worth individuals and their business interests. The Commercial & Institutional segment offers banking and financial solutions to large corporate organisations, multi-nationals, and financial institutions. The company was formerly known as The Royal Bank of Scotland Group plc and changed its name to NatWest Group plc in July 2020. NatWest Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.