Comprehensive Stock Comparison
Compare Banco Santander, S.A. (SAN) vs NatWest Group plc (NWG) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NWG | 101.6% revenue growth vs SAN's 6.6% |
| Value | SAN | Lower P/E (8.7x vs 11.6x), PEG 0.51 vs 0.85 |
| Quality / Margins | NWG | 16.8% net margin vs SAN's 9.7% |
| Stability / Safety | NWG | Beta 0.90 vs SAN's 1.05, lower leverage |
| Dividends | SAN | 1.8% yield, 3-year raise streak, vs NWG's 3.4% |
| Momentum (1Y) | SAN | +97.2% vs NWG's +40.9% |
| Efficiency (ROA) | SAN | 0.7% ROA vs NWG's 0.7%, ROIC 2.8% vs 4.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Banco Santander is a global retail and commercial bank providing banking services to individuals, small businesses, and corporations across Europe and the Americas. It generates revenue primarily through net interest income from lending activities—including mortgages, consumer loans, and corporate financing—supplemented by fees from transaction banking, wealth management, and insurance products. The bank's competitive advantage lies in its diversified geographic footprint across ten core markets—which provides natural hedging and cross-selling opportunities—and its scale as one of Europe's largest banks by market capitalization.
NatWest Group is a major UK-based banking group providing retail, commercial, and institutional banking services across the United Kingdom and internationally. It generates revenue primarily through net interest income from lending activities (~60% of total income) and fee-based income from banking services, wealth management, and capital markets operations. The company's competitive advantage lies in its entrenched position as one of the UK's largest retail banks with extensive branch networks, established commercial relationships, and government ownership providing stability.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
NWG leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). SAN leads in 1 (Total Returns). 3 tied.
Financial Metrics (TTM)
SAN is the larger business by revenue, generating $129.9B annually — 4.5x NWG's $28.6B. NWG is the more profitable business, keeping 16.8% of every revenue dollar as net income compared to SAN's 9.7%.
| Metric | SANBanco Santander, … | NWGNatWest Group plc |
|---|---|---|
| RevenueTrailing 12 months | $129.9B | $28.6B |
| EBITDAEarnings before interest/tax | $22.1B | $7.9B |
| Net IncomeAfter-tax profit | $13.6B | $5.2B |
| Free Cash FlowCash after capex | $8.4B | $0 |
| Gross MarginGross profit ÷ Revenue | +39.4% | +51.3% |
| Operating MarginEBIT ÷ Revenue | +14.6% | +21.7% |
| Net MarginNet income ÷ Revenue | +9.7% | +16.8% |
| FCF MarginFCF ÷ Revenue | -25.1% | +2.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +10.0% | +7.1% |
Valuation Metrics
At 11.6x trailing earnings, NWG trades at a 14% valuation discount to SAN's 13.6x P/E. Adjusting for growth (PEG ratio), SAN offers better value at 0.80x vs NWG's 0.86x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SANBanco Santander, … | NWGNatWest Group plc |
|---|---|---|
| Market CapShares × price | $181.4B | $66.2B |
| Enterprise ValueMkt cap + debt − cash | $494.6B | $29.7B |
| Trailing P/EPrice ÷ TTM EPS | 13.61x | 11.64x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.74x | 11.61x |
| PEG RatioP/E ÷ EPS growth rate | 0.80x | 0.86x |
| EV / EBITDAEnterprise value multiple | 18.78x | 3.04x |
| Price / SalesMarket cap ÷ Revenue | 1.18x | 1.72x |
| Price / BookPrice ÷ Book value/share | 1.52x | 1.33x |
| Price / FCFMarket cap ÷ FCF | — | 70.87x |
Profitability & Efficiency
NWG delivers a 12.5% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $12 for SAN. NWG carries lower financial leverage with a 1.67x debt-to-equity ratio, signaling a more conservative balance sheet compared to SAN's 4.50x. On the Piotroski fundamental quality scale (0–9), SAN scores 6/9 vs NWG's 5/9, reflecting solid financial health.
| Metric | SANBanco Santander, … | NWGNatWest Group plc |
|---|---|---|
| ROE (TTM)Return on equity | +12.4% | +12.5% |
| ROA (TTM)Return on assets | +0.7% | +0.7% |
| ROICReturn on invested capital | +2.8% | +4.6% |
| ROCEReturn on capital employed | +1.1% | +2.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 4.50x | 1.67x |
| Net DebtTotal debt minus cash | $265.5B | -$27.1B |
| Cash & Equiv.Liquid assets | $217.9B | $93.1B |
| Total DebtShort + long-term debt | $483.4B | $65.9B |
| Interest CoverageEBIT ÷ Interest expense | 1.21x | 0.50x |
Total Returns (with DRIP)
A $10,000 investment in SAN five years ago would be worth $37,214 today (with dividends reinvested), compared to $34,385 for NWG. Over the past 12 months, SAN leads with a +97.2% total return vs NWG's +40.9%. The 3-year compound annual growth rate (CAGR) favors SAN at 49.0% vs NWG's 37.0% — a key indicator of consistent wealth creation.
| Metric | SANBanco Santander, … | NWGNatWest Group plc |
|---|---|---|
| YTD ReturnYear-to-date | +2.4% | -6.8% |
| 1-Year ReturnPast 12 months | +97.2% | +40.9% |
| 3-Year ReturnCumulative with dividends | +230.9% | +156.9% |
| 5-Year ReturnCumulative with dividends | +272.1% | +243.8% |
| 10-Year ReturnCumulative with dividends | +272.8% | +199.7% |
| CAGR (3Y)Annualised 3-year return | +49.0% | +37.0% |
Risk & Volatility
NWG is the less volatile stock with a 0.90 beta — it tends to amplify market swings less than SAN's 1.05 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SAN currently trades 93.4% from its 52-week high vs NWG's 85.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SANBanco Santander, … | NWGNatWest Group plc |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.05x | 0.90x |
| 52-Week HighHighest price in past year | $13.24 | $19.36 |
| 52-Week LowLowest price in past year | $5.54 | $10.40 |
| % of 52W HighCurrent price vs 52-week peak | +93.4% | +85.7% |
| RSI (14)Momentum oscillator 0–100 | 56.7 | 48.7 |
| Avg Volume (50D)Average daily shares traded | 7.9M | 2.6M |
Analyst Outlook
Wall Street rates SAN as "Buy" and NWG as "Buy". For income investors, NWG offers the higher dividend yield at 3.43% vs SAN's 1.85%.
| Metric | SANBanco Santander, … | NWGNatWest Group plc |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $3.00 | — |
| # AnalystsCovering analysts | 23 | 6 |
| Dividend YieldAnnual dividend ÷ price | +1.8% | +3.4% |
| Dividend StreakConsecutive years of raises | 3 | 1 |
| Dividend / ShareAnnual DPS | $0.19 | $0.42 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.1% | +5.5% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | 100 | 372.08 | +272.1% |
| NatWest Group plc (NWG) | 100 | 377.15 | +277.2% |
Banco Santander, S.… (SAN) returned +272% over 5 years vs NatWest Group plc (NWG)'s +244%. A $10,000 investment in SAN 5 years ago would be worth $37,214 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | $71.7B | $129.9B | +81.2% |
| NatWest Group plc (NWG) | $16.1B | $28.6B | +77.5% |
Banco Santander, S.A.'s revenue grew from $71.7B (2015) to $129.9B (2024) — a 6.8% CAGR. NatWest Group plc's revenue grew from $16.1B (2015) to $28.6B (2024) — a 6.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | 8.3% | 9.7% | +16.3% |
| NatWest Group plc (NWG) | -9.9% | 16.8% | +269.7% |
Banco Santander, S.A.'s net margin went from 8% (2015) to 10% (2024). NatWest Group plc's net margin went from -10% (2015) to 17% (2024).
Chart 4P/E Ratio History — 7 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | 16.1 | 5.9 | -63.4% |
| NatWest Group plc (NWG) | 58.8 | 9.6 | -83.7% |
Banco Santander, S.A. has traded in a 6x–16x P/E range over 7 years; current trailing P/E is ~14x. NatWest Group plc has traded in a 6x–59x P/E range over 7 years; current trailing P/E is ~12x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | 0.38 | 0.77 | +102.6% |
| NatWest Group plc (NWG) | -0.36 | 1.06 | +394.4% |
Banco Santander, S.A.'s EPS grew from $0.38 (2015) to $0.77 (2024) — a 8% CAGR. NatWest Group plc's EPS grew from $-0.36 (2015) to $1.06 (2024).
Chart 6Free Cash Flow — 5 Years
Banco Santander, S.A. generated $-33B FCF in 2024 (-172% vs 2021). NatWest Group plc generated $694M FCF in 2024 (-99% vs 2021).
SAN vs NWG: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SAN or NWG a better buy right now?
NatWest Group plc (NWG) offers the better valuation at 11.6x trailing P/E (11.6x forward), making it the more compelling value choice. Analysts rate Banco Santander, S.A. (SAN) a "Buy" — based on 23 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.
02Which has the better valuation — SAN or NWG?
On trailing P/E, NatWest Group plc (NWG) is the cheapest at 11.6x 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: Banco Santander, S.A. wins at 0.51x versus NatWest Group plc's 0.85x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SAN or NWG?
Over the past 5 years, Banco Santander, S.A. (SAN) delivered a total return of +272.1%, compared to +243.8% for NatWest Group plc (NWG). 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 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.
04Which is safer — SAN or NWG?
By beta (market sensitivity over 5 years), NatWest Group plc (NWG) is the lower-risk stock at 0.90β versus Banco Santander, S.A.'s 1.05β — meaning SAN is approximately 17% more volatile than NWG relative to the S&P 500. On balance sheet safety, NatWest Group plc (NWG) carries a lower debt/equity ratio of 167% versus 5% for Banco Santander, S.A. — giving it more financial flexibility in a downturn.
05Which has better profit margins — SAN or NWG?
NatWest Group plc (NWG) is the more profitable company, earning 16.8% net margin versus 9.7% for Banco Santander, S.A. — meaning it keeps 16.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NWG leads at 21.7% versus 14.6% for SAN. At the gross margin level — before operating expenses — NWG leads at 51.3%, 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.
06Is SAN or NWG more undervalued right now?
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, Banco Santander, S.A. (SAN) is the more undervalued stock at a PEG of 0.51x 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, Banco Santander, S.A. (SAN) trades at 8.7x forward P/E versus 11.6x for NatWest Group plc — 2.9x cheaper on a one-year earnings basis.
07Which pays a better dividend — SAN or NWG?
All stocks in this comparison pay dividends. NatWest Group plc (NWG) offers the highest yield at 3.4%, versus 1.8% for Banco Santander, S.A. (SAN).
08Is SAN or NWG better for a retirement portfolio?
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%, SAN: +272.8%), 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.
09What are the main differences between SAN and NWG?
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. 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.
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