Critical Review: NatWest Group (OTCMKTS:RBSPF) versus Akbank Turk Anonim Sirketi (OTCMKTS:AKBTY)

Valuation & Earnings

This table compares Akbank Turk Anonim Sirketi and NatWest Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akbank Turk Anonim Sirketi	$19.70 billion	0.47	$1.45 billion	$0.56	6.34
NatWest Group	$38.91 billion	1.68	$7.69 billion	$0.88	9.28

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

Volatility and Risk

Akbank Turk Anonim Sirketi has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, NatWest Group has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Profitability

This table compares Akbank Turk Anonim Sirketi and NatWest Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akbank Turk Anonim Sirketi	7.56%	21.46%	1.84%
NatWest Group	18.59%	13.05%	0.76%

Summary

NatWest Group beats Akbank Turk Anonim Sirketi on 7 of the 9 factors compared between the two stocks.

About Akbank Turk Anonim Sirketi

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through Consumer Banking and Private Banking; Commercial Banking, Corporate Banking, and SME Banking; and Treasury, Other, and Unallovated segments. The company’s consumer banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and working capital management, delivering cash management services based on customers’ requests, such as collection and payment services, and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related to treasury products. Further, it provides financial leasing services, investment and pension funds management, and portfolio management, as well as offers payment services and issues electronic money. Akbank T.A.S. was incorporated in 1948 and is headquartered in Istanbul, Turkey.

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.