Comparing NU (NYSE:NU) and NatWest Group (OTCMKTS:RBSPF)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NU and NatWest Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NU	0	2	12	0	2.86
NatWest Group	0	0	0	0	0.00

NU currently has a consensus price target of $18.26, suggesting a potential upside of 22.26%. Given NU’s stronger consensus rating and higher possible upside, research analysts plainly believe NU is more favorable than NatWest Group.

Institutional and Insider Ownership

84.0% of NU shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares NU and NatWest Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NU	$15.77 billion	4.56	$2.87 billion	$0.58	25.75
NatWest Group	$38.91 billion	1.70	$7.69 billion	$0.88	9.40

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

Risk & Volatility

NU has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, NatWest Group has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NU	18.19%	30.68%	4.72%
NatWest Group	18.59%	13.05%	0.76%

Summary

NU beats NatWest Group on 9 of the 13 factors compared between the two stocks.

About NU

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.

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.