Head-To-Head Analysis: Bank Hapoalim (OTCMKTS:BKHYY) vs. NatWest Group (OTCMKTS:RBSPF)

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

Valuation & Earnings

This table compares NatWest Group and Bank Hapoalim”s gross 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	1.63	$7.69 billion	$0.88	9.00
Bank Hapoalim	$12.56 billion	2.78	$2.84 billion	$10.73	12.43

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NatWest Group	18.59%	13.05%	0.76%
Bank Hapoalim	22.63%	15.20%	1.26%

Analyst Recommendations

This is a summary of recent ratings for NatWest Group and Bank Hapoalim, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NatWest Group	0	0	0	0	0.00
Bank Hapoalim	0	2	0	0	2.00

Risk & Volatility

NatWest Group has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Bank Hapoalim has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Summary

Bank Hapoalim beats NatWest Group on 8 of the 10 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 Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.