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NWG vs. NRDBY: Which Stock Should Value Investors Buy Now?
NatWest GroupNatWest Group(US:NWG) ZACKSยท2025-08-07 16:40

Core Viewpoint - Investors in the Banks - Foreign sector may consider NatWest Group (NWG) or Nordea Bank AB (NRDBY) as potential investment opportunities, with a closer examination needed to determine which stock is more appealing to value investors [1] Valuation Metrics - NatWest Group has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Nordea Bank AB has a Zacks Rank of 3 (Hold) [3] - NWG has a forward P/E ratio of 8.84, compared to NRDBY's forward P/E of 9.25, suggesting NWG may be undervalued [5] - The PEG ratio for NWG is 0.81, indicating better expected earnings growth relative to its price, while NRDBY has a PEG ratio of 2.99, suggesting it may be overvalued [5] - NWG's P/B ratio is 1.02, which is lower than NRDBY's P/B of 1.51, further supporting NWG's valuation as more attractive [6] - Based on these metrics, NWG has a Value grade of B, while NRDBY has a Value grade of D, indicating NWG is the superior value option [6][7] Earnings Outlook - NWG is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]