Head-To-Head Review: NatWest Group (NYSE:NWG) versus Nordea Bank Abp (OTCMKTS:NRDBY)

NatWest Group (NYSE:NWG) and Nordea Bank Abp (OTCMKTS:NRDBY) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Volatility & Risk

NatWest Group has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Nordea Bank Abp has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares NatWest Group and Nordea Bank Abp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NatWest Group	21.11%	10.86%	0.53%
Nordea Bank Abp	24.69%	15.76%	0.78%

Dividends

NatWest Group pays an annual dividend of $0.27 per share and has a dividend yield of 4.8%. Nordea Bank Abp pays an annual dividend of $0.71 per share and has a dividend yield of 6.6%. NatWest Group pays out 28.7% of its earnings in the form of a dividend. Nordea Bank Abp pays out 52.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

1.1% of NatWest Group shares are owned by institutional investors. Comparatively, 0.0% of Nordea Bank Abp shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares NatWest Group and Nordea Bank Abp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NatWest Group	$14.83 billion	1.75	$4.44 billion	$0.94	6.03
Nordea Bank Abp	$13.79 billion	2.81	$3.79 billion	$1.35	8.02

NatWest Group has higher revenue and earnings than Nordea Bank Abp. NatWest Group is trading at a lower price-to-earnings ratio than Nordea Bank Abp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for NatWest Group and Nordea Bank Abp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NatWest Group	1	3	0	0	1.75
Nordea Bank Abp	0	1	0	0	2.00

NatWest Group presently has a consensus target price of $365.00, indicating a potential upside of 6,337.39%. Given NatWest Group’s higher possible upside, equities research analysts clearly believe NatWest Group is more favorable than Nordea Bank Abp.

Summary

Nordea Bank Abp beats NatWest Group on 8 of the 14 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 Nordea Bank Abp

Nordea Bank Abp offers banking products and services in Sweden, Finland, Norway, Denmark, and internationally. It operates through Personal Banking, Business Banking, Large Corporates and Institutions, and Asset and Wealth Management segments. The Personal Banking segment provides various financial services to household customers through mobile banking, over the phone, online meetings, and branch offices. The Business Banking segment offers payments, cash management, cards, working capital management, and finance solutions to corporate and personal customers. The Large Corporates and Institutions segment provides financing, cash management and payment, investment banking, and securities services, as well as capital market products and securities to corporate and institutional customers. The Asset and Wealth Management segment offers investment, savings, and risk management solutions to high net worth individuals and institutional investors. This segment also offers private banking, life and pensions products, and asset management services. Nordea Bank Abp was founded in 1820 and is headquartered in Helsinki, Finland.