Head-To-Head Contrast: Commerzbank (OTCMKTS:CRZBY) & NatWest Group (NYSE:NWG)

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

Institutional and Insider Ownership

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

Valuation and Earnings

This table compares Commerzbank and NatWest Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$25.96 billion	1.46	$2.90 billion	$2.27	14.81
NatWest Group	$38.91 billion	1.54	$7.69 billion	$1.79	8.35

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Commerzbank and NatWest Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	5	2	1	2.50
NatWest Group	0	3	2	1	2.67

Dividends

Commerzbank pays an annual dividend of $0.51 per share and has a dividend yield of 1.5%. NatWest Group pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. Commerzbank pays out 22.5% of its earnings in the form of a dividend. NatWest Group pays out 27.9% 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 Commerzbank and NatWest Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerzbank	11.03%	7.29%	0.45%
NatWest Group	18.59%	13.05%	0.76%

Risk and Volatility

Commerzbank has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, NatWest Group has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Summary

NatWest Group beats Commerzbank on 10 of the 13 factors compared between the two stocks.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

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.