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NWG vs TFC

NWG
NatWest Group plc
NEUTRAL
Price
$15.91
Market Cap
$63.35B
Sector
Financial Services
AI Confidence
80%
TFC
Truist Financial Corporation
BULLISH
Price
$49.43
Market Cap
$63.23B
Sector
Financial Services
AI Confidence
75%

Valuation

P/E Ratio
NWG
8.74
TFC
12.94
Forward P/E
NWG
7.42
TFC
9.69
P/B Ratio
NWG
1.24
TFC
1.04
P/S Ratio
NWG
3.97
TFC
3.43
EV/EBITDA
NWG
--
TFC
--

Profitability

Gross Margin
NWG
0.0%
TFC
0.0%
Operating Margin
NWG
47.06%
TFC
32.7%
Profit Margin
NWG
36.51%
TFC
28.8%
ROE
NWG
14.23%
TFC
8.24%
ROA
NWG
0.82%
TFC
0.98%

Growth

Revenue Growth
NWG
11.4%
TFC
3.2%
Earnings Growth
NWG
13.1%
TFC
10.8%

Financial Health

Debt/Equity
NWG
--
TFC
--
Current Ratio
NWG
--
TFC
--
Quick Ratio
NWG
--
TFC
--

Dividends

Dividend Yield
NWG
5.5%
TFC
4.21%
Payout Ratio
NWG
36.66%
TFC
54.45%

AI Verdict

NWG NEUTRAL

NWG presents a stark contrast between deep value and deteriorating fundamental health. While the stock trades significantly below its Graham Number ($22.92) and Intrinsic Value ($48.5), the Piotroski F-Score of 2/9 indicates severe weakness in financial health and operational efficiency. Strong dividend yields and low P/E ratios are offset by a bearish technical trend and poor fundamental momentum. The investment case relies on a value-recovery thesis, but the low health score suggests significant underlying risks.

Strengths
Deeply undervalued relative to Graham Number ($22.92) and Intrinsic Value ($48.5)
Attractive dividend yield of 5.50% with a sustainable payout ratio of 36.66%
Low P/E ratio (8.74) and Forward P/E (7.42) compared to sector averages
Risks
Critical fundamental weakness indicated by a Piotroski F-Score of 2/9
Bearish technical trend (0/100) suggesting strong downward momentum
High PEG ratio (3.49) suggesting growth may not justify the current valuation
TFC BULLISH

TFC presents a compelling value opportunity, trading significantly below its Graham Number ($64.06) and Intrinsic Value ($88.62). While the Piotroski F-Score of 4/9 indicates only stable financial health and technical trends are currently bearish, the fundamental valuation metrics (P/E of 12.94 and P/B of 1.04) are highly attractive. Strong year-over-year earnings growth of 23.1% and a sustainable 4.21% dividend yield provide a solid floor for investors. The disconnect between the deep value and the bearish insider/technical signals suggests a potential contrarian entry point.

Strengths
Significant discount to Graham Number and Intrinsic Value
Strong YoY earnings growth of 23.1%
Attractive dividend yield of 4.21% with a sustainable 54.45% payout ratio
Risks
Bearish insider sentiment with recent sales by the CFO and Directors
Technical trend is currently 0/100 (Bearish)
Slow top-line revenue growth (3.20% YoY)

Compare Another Pair

NWG vs TFC: Head-to-Head Comparison

This page compares NatWest Group plc (NWG) and Truist Financial Corporation (TFC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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