Head-To-Head Survey: NatWest Group (NYSE:NWG) and DNB Bank ASA (OTCMKTS:DNBBY)

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

Dividends

NatWest Group pays an annual dividend of $0.31 per share and has a dividend yield of 2.9%. DNB Bank ASA pays an annual dividend of $1.07 per share and has a dividend yield of 5.1%. NatWest Group pays out 23.5% of its earnings in the form of a dividend. DNB Bank ASA pays out 42.1% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NatWest Group	N/A	11.97%	0.65%
DNB Bank ASA	19.22%	14.70%	1.09%

Institutional & Insider Ownership

1.3% of NatWest Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

NatWest Group has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, DNB Bank ASA has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Valuation & Earnings

This table compares NatWest Group and DNB Bank ASA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NatWest Group	$14.44 billion	2.97	$5.77 billion	$1.32	8.06
DNB Bank ASA	$17.13 billion	1.82	$3.74 billion	$2.54	8.24

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

Analyst Recommendations

This is a summary of current ratings for NatWest Group and DNB Bank ASA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NatWest Group	0	0	3	1	3.25
DNB Bank ASA	0	1	0	0	2.00

Summary

NatWest Group beats DNB Bank ASA on 8 of the 15 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 DNB Bank ASA

DNB Bank ASA provides financial services for individual and business customers in Norway and internationally. The company offers savings, current, and pension accounts; fixed rate and security deposits; home and cabin mortgages, car and consumer loans, business loans, and refinancing; car, house, home contents, travel, personal, and non-life insurance product; payment services; and online and mobile banking services, as well as cards. It also provides overdraft facilities; leasing services; factoring, supply chain, and receivable purchase financing services; bank guarantee, secure trading, documentary collection, and letter of credit services; investment banking services, such as mergers and acquisition, equity and debt capital market, shares and securities, mutual funds and trading, and bonds and commodities; and private financing, as well as equity trading, foreign exchange, interest rates, and risk advisory services. In addition, the company offers treasury management, working capital, trade finance, auto lease and equipment financing, and corporate finance services, as well as act as an estate agents. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.