Compare NatWest Group plc (NWG) vs ING Groep N.V. (ING) 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 NatWest Group plc (NWG) a "Buy" — based on 6 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 NatWest Group plc at 11.6x. On forward P/E, ING Groep N.V. is actually cheaper at 10.4x. 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 NatWest Group plc's 0.85x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, NatWest Group plc (NWG) delivered a total return of +243.8%, compared to +202.9% for ING Groep N.V. (ING). A $10,000 investment in NWG five years ago would be worth approximately $34K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ING returned +214.1% versus NWG's +199.7%. 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 NatWest Group plc's 0.90β — meaning NWG is approximately 4% more volatile than ING relative to the S&P 500. On balance sheet safety, NatWest Group plc (NWG) carries a lower debt/equity ratio of 167% versus 3% for ING Groep N.V. — giving it more financial flexibility in a downturn.

ING Groep N.V. (ING) is the more profitable company, earning 27.5% net margin versus 16.8% for NatWest Group plc — 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 21.7% for NWG. 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 NatWest Group plc's 0.85x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, ING Groep N.V. (ING) trades at 10.4x forward P/E versus 11.6x for NatWest Group plc — 1.2x cheaper on a one-year earnings basis.

In this comparison, NWG (3.4% yield) pays a dividend. ING does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, NatWest Group plc (NWG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.90), 3.4% yield, +199.7% 10Y return). Both have compounded well over 10 years (NWG: +199.7%, 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. NWG 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.