South Plains Financial (NASDAQ:SPFI – Get Free Report) and NatWest Group (OTCMKTS:RBSPF – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Analyst Ratings
This is a breakdown of current ratings and target prices for South Plains Financial and NatWest Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| South Plains Financial | 0 | 1 | 5 | 1 | 3.00 |
| NatWest Group | 0 | 0 | 1 | 0 | 3.00 |
South Plains Financial currently has a consensus target price of $49.60, suggesting a potential upside of 15.12%. Given South Plains Financial’s higher probable upside, analysts plainly believe South Plains Financial is more favorable than NatWest Group.
Insider & Institutional Ownership
55.0% of South Plains Financial shares are held by institutional investors. 24.3% of South Plains Financial shares are held 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.
Volatility & Risk
South Plains Financial has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, NatWest Group has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Valuation & Earnings
This table compares South Plains Financial 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 | |
| South Plains Financial | $231.34 million | 3.51 | $58.47 million | $3.77 | 11.43 |
| NatWest Group | $38.91 billion | 1.65 | $7.69 billion | $1.00 | 8.02 |
NatWest Group has higher revenue and earnings than South Plains Financial. NatWest Group is trading at a lower price-to-earnings ratio than South Plains Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares South Plains Financial and NatWest Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| South Plains Financial | 21.23% | 12.36% | 1.40% |
| NatWest Group | 19.61% | 13.75% | 0.80% |
Summary
South Plains Financial beats NatWest Group on 10 of the 14 factors compared between the two stocks.
About South Plains Financial
South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.
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.
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