NatWest Group (OTCMKTS:RBSPF – Get Free Report) and California BanCorp (NASDAQ:BCAL – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Institutional & Insider Ownership
55.4% of California BanCorp shares are owned by institutional investors. 8.1% of California BanCorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares NatWest Group and California BanCorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NatWest Group | $38.91 billion | 1.91 | $7.69 billion | $1.00 | 9.25 |
| California BanCorp | $237.07 million | 3.00 | $63.06 million | $1.84 | 12.01 |
NatWest Group has higher revenue and earnings than California BanCorp. NatWest Group is trading at a lower price-to-earnings ratio than California BanCorp, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
NatWest Group has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, California BanCorp has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.
Profitability
This table compares NatWest Group and California BanCorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NatWest Group | 20.10% | 14.01% | 0.82% |
| California BanCorp | 26.01% | 10.44% | 1.49% |
Analyst Ratings
This is a summary of current recommendations for NatWest Group and California BanCorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NatWest Group | 0 | 0 | 1 | 0 | 3.00 |
| California BanCorp | 0 | 1 | 5 | 0 | 2.83 |
California BanCorp has a consensus target price of $24.50, indicating a potential upside of 10.91%. Given California BanCorp’s higher possible upside, analysts plainly believe California BanCorp is more favorable than NatWest Group.
Summary
California BanCorp beats NatWest Group on 9 of the 14 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 California BanCorp
Southern California Bancorp operates as the holding company for Bank of Southern California, N.A. that provides various financial products to individuals, professionals, and small-to medium-sized businesses. The company offers checking, personal and business savings, and money market accounts, as well as certificates of deposit. It also provides home equity lines of credit, business loans and lines of credit, commercial real estate and construction loans, small business administration loans, letters of credit, and personal and business credit cards. In addition, the company provides cash vault, sweep accounts, and remote deposit capture services; online and mobile banking services; courier service; lockbox services; and merchant services. It operates branches in San Diego, Orange, Ventura, Los Angeles, and Riverside counties, as well as the Inland Empire. The company was founded in 2001 and is headquartered in San Diego, California.
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