Financial Review: National Australia Bank (OTCMKTS:NABZY) versus NatWest Group (OTCMKTS:RBSPF)
by Teresa Graham · The Cerbat GemNatWest Group (OTCMKTS:RBSPF – Get Free Report) and National Australia Bank (OTCMKTS:NABZY – Get Free Report) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Earnings & Valuation
This table compares NatWest Group and National Australia Bank”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NatWest Group | $36.57 billion | 1.89 | $6.14 billion | $0.84 | 10.27 |
| National Australia Bank | $38.78 billion | 2.17 | $4.35 billion | N/A | N/A |
NatWest Group has higher earnings, but lower revenue than National Australia Bank.
Risk & Volatility
NatWest Group has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for NatWest Group and National Australia Bank, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NatWest Group | 0 | 0 | 0 | 0 | 0.00 |
| National Australia Bank | 2 | 0 | 0 | 0 | 1.00 |
National Australia Bank has a consensus price target of $38.00, indicating a potential upside of 176.16%. Given National Australia Bank’s stronger consensus rating and higher probable upside, analysts clearly believe National Australia Bank is more favorable than NatWest Group.
Profitability
This table compares NatWest Group and National Australia Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NatWest Group | 18.18% | 12.77% | 0.73% |
| National Australia Bank | N/A | N/A | N/A |
Summary
National Australia Bank beats NatWest Group on 5 of the 9 factors compared between the two stocks.
About NatWest Group
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.
About National Australia Bank
National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.