Financial Analysis: Triumph Financial (NYSE:TFIN) vs. NatWest Group (OTCMKTS:RBSPF)

Triumph Financial (NYSE:TFIN) and NatWest Group (OTCMKTS:RBSPF) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Triumph Financial	8.96%	5.57%	0.72%
NatWest Group	19.61%	13.75%	0.80%

Earnings & Valuation

This table compares Triumph Financial and NatWest Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triumph Financial	$518.88 million	2.84	$25.36 million	$1.96	31.43
NatWest Group	$38.91 billion	1.64	$7.69 billion	$1.00	7.97

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

Volatility and Risk

Triumph Financial has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, NatWest Group has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Triumph Financial and NatWest Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triumph Financial	0	5	2	0	2.29
NatWest Group	0	0	1	0	3.00

Triumph Financial presently has a consensus target price of $78.80, suggesting a potential upside of 27.93%. Given Triumph Financial’s higher possible upside, equities analysts plainly believe Triumph Financial is more favorable than NatWest Group.

Institutional & Insider Ownership

91.1% of Triumph Financial shares are held by institutional investors. 5.5% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Triumph Financial beats NatWest Group on 8 of the 14 factors compared between the two stocks.

About Triumph Financial

Triumph Financial, Inc. is a financial services company focused on payments, factoring and banking, with a particular emphasis on the transportation industry. Its services include freight-payment solutions through TriumphPay, invoice factoring through Triumph Business Capital and commercial banking through TBK Bank. TriumphPay connects freight brokers, carriers and other participants in the transportation-payment process, offering tools for invoice management, payment processing and related services.

About NatWest Group

NatWest Group plc is a UK-based banking and financial services group serving individuals, businesses and institutions. Its activities include personal and business banking, commercial and corporate banking, private banking and wealth management, with services such as current and savings accounts, mortgages, lending, payments and cash management. The group operates through well-known brands including NatWest, Royal Bank of Scotland, Ulster Bank in Northern Ireland and Coutts. Its main market is the United Kingdom, where it provides financial services through digital channels and a network of branches and relationship teams.