TrustCo Bank Corp NY (NASDAQ:TRST) vs. NatWest Group (NYSE:NWG) Head to Head Survey

NatWest Group (NYSE:NWG) and TrustCo Bank Corp NY (NASDAQ:TRST) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Institutional & Insider Ownership

1.3% of NatWest Group shares are held by institutional investors. Comparatively, 68.6% of TrustCo Bank Corp NY shares are held by institutional investors. 3.4% of TrustCo Bank Corp NY shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares NatWest Group and TrustCo Bank Corp NY”s top-line 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	1.97	$7.69 billion	$2.01	9.55
TrustCo Bank Corp NY	$278.36 million	3.58	$61.14 million	$3.60	15.84

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

Analyst Ratings

This is a summary of recent ratings and price targets for NatWest Group and TrustCo Bank Corp NY, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NatWest Group	0	3	3	1	2.71
TrustCo Bank Corp NY	0	0	1	0	3.00

Volatility and Risk

NatWest Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, TrustCo Bank Corp NY has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Profitability

This table compares NatWest Group and TrustCo Bank Corp NY’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%
TrustCo Bank Corp NY	22.76%	9.62%	1.01%

Dividends

NatWest Group pays an annual dividend of $1.21 per share and has a dividend yield of 6.3%. TrustCo Bank Corp NY pays an annual dividend of $1.52 per share and has a dividend yield of 2.7%. NatWest Group pays out 60.2% of its earnings in the form of a dividend. TrustCo Bank Corp NY pays out 42.2% 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.

Summary

TrustCo Bank Corp NY beats NatWest Group on 9 of the 16 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 TrustCo Bank Corp NY

TrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals and businesses. The company accepts deposits; and offers loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit-sharing trusts. It operates through banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York; Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida; Bennington County in Vermont; Berkshire County in Massachusetts; and Bergen County in New Jersey, as well as automatic teller machines. The company was founded in 1902 and is headquartered in Glenville, New York.