Compare ING Groep N.V. (ING) vs Banco Santander, S.A. (SAN) Stock

ING Groep N.V. (ING) offers the better valuation at 11.5x trailing P/E (10.4x forward), making it the more compelling value choice. Analysts rate ING Groep N.V. (ING) a "Buy" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, ING Groep N.V. (ING) is the cheapest at 11.5x versus Banco Santander, S.A. at 13.6x. On forward P/E, Banco Santander, S.A. is actually cheaper at 8.7x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ING Groep N.V. wins at 0.38x versus Banco Santander, S.A.'s 0.51x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Banco Santander, S.A. (SAN) delivered a total return of +272.1%, compared to +202.9% for ING Groep N.V. (ING). A $10,000 investment in SAN five years ago would be worth approximately $37K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SAN returned +272.8% versus ING's +214.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), ING Groep N.V. (ING) is the lower-risk stock at 0.87β versus Banco Santander, S.A.'s 1.05β — meaning SAN is approximately 22% more volatile than ING relative to the S&P 500. On balance sheet safety, ING Groep N.V. (ING) carries a lower debt/equity ratio of 3% versus 5% for Banco Santander, S.A. — giving it more financial flexibility in a downturn.

ING Groep N.V. (ING) is the more profitable company, earning 27.5% net margin versus 9.7% for Banco Santander, S.A. — meaning it keeps 27.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ING leads at 39.7% versus 14.6% for SAN. At the gross margin level — before operating expenses — ING leads at 94.3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, ING Groep N.V. (ING) is the more undervalued stock at a PEG of 0.38x versus Banco Santander, S.A.'s 0.51x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Banco Santander, S.A. (SAN) trades at 8.7x forward P/E versus 10.4x for ING Groep N.V. — 1.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ING: -21.8% to $22.50.

In this comparison, SAN (1.8% yield) pays a dividend. ING does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Banco Santander, S.A. (SAN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.05), 1.8% yield, +272.8% 10Y return). Both have compounded well over 10 years (SAN: +272.8%, ING: +214.1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. SAN pays a dividend while ING does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.