AFL vs. NWG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFL and NWG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AFL’s market capitalization of 56.54 billion USD is substantially larger than NWG’s 27.15 billion USD, indicating a significant difference in their market valuations.
With betas of 0.81 for AFL and 0.98 for NWG, both stocks show similar sensitivity to overall market movements.
NWG is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AFL, on the other hand, is a domestic entity.
| Symbol | AFL | NWG |
|---|---|---|
| Company Name | Aflac Incorporated | NatWest Group plc |
| Country | US | GB |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Life | Banks - Diversified |
| CEO | Daniel Paul Amos | John-Paul Thwaite |
| Price | 104.57 USD | 13.44 USD |
| Market Cap | 56.54 billion USD | 27.15 billion USD |
| Beta | 0.81 | 0.98 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | October 18, 2007 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AFL and NWG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AFL
13.91%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
AFL’s Return on Equity of 13.91% is on par with the norm for the Insurance - Life industry, indicating its profitability relative to shareholder equity is typical for the sector.
NWG
13.16%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.73%
- Median
- 12.33%
- Q1
- 9.14%
- Min
- 5.86%
NWG’s Return on Equity of 13.16% is on par with the norm for the Banks - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AFL
2.99%
Insurance - Life Industry
- Max
- 6.30%
- Q3
- 3.33%
- Median
- 2.16%
- Q1
- 0.68%
- Min
- -0.10%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Life industry.
NWG
2.95%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.95%
- Median
- 1.89%
- Q1
- 0.86%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.
Net Profit Margin
AFL
21.03%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
A Net Profit Margin of 21.03% places AFL in the upper quartile for the Insurance - Life industry, signifying strong profitability and more effective cost management than most of its peers.
NWG
26.40%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.40%
- Median
- 19.24%
- Q1
- 14.99%
- Min
- 7.95%
NWG’s Net Profit Margin of 26.40% is aligned with the median group of its peers in the Banks - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AFL
25.70%
Insurance - Life Industry
- Max
- 38.96%
- Q3
- 37.28%
- Median
- 14.06%
- Q1
- 8.95%
- Min
- -1.68%
In the Insurance - Life industry, Operating Profit Margin is often not the primary measure of operational efficiency.
NWG
37.76%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.76%
- Median
- 28.44%
- Q1
- 15.73%
- Min
- 8.60%
NWG’s Operating Profit Margin of 37.76% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AFL | NWG |
|---|---|---|
| Return on Equity (TTM) | 13.91% | 13.16% |
| Return on Assets (TTM) | 2.99% | 0.71% |
| Return on Invested Capital (TTM) | 2.99% | 2.95% |
| Net Profit Margin (TTM) | 21.03% | 26.40% |
| Operating Profit Margin (TTM) | 25.70% | 37.76% |
| Gross Profit Margin (TTM) | 79.82% | 119.00% |
Financial Strength
Current Ratio
AFL
--
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
Current Ratio data for AFL is currently unavailable.
NWG
0.35
Banks - Diversified Industry
- Max
- 0.67
- Q3
- 0.49
- Median
- 0.39
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio
AFL
0.29
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
Falling into the lower quartile for the Insurance - Life industry, AFL’s Debt-to-Equity Ratio of 0.29 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
NWG
0.17
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.65
- Median
- 3.13
- Q1
- 1.73
- Min
- 0.09
Falling into the lower quartile for the Banks - Diversified industry, NWG’s Debt-to-Equity Ratio of 0.17 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
AFL
21.96
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
AFL’s Interest Coverage Ratio of 21.96 is in the upper quartile for the Insurance - Life industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
NWG
0.69
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.78
- Median
- 0.55
- Q1
- 0.31
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | AFL | NWG |
|---|---|---|
| Current Ratio (TTM) | -- | 0.35 |
| Quick Ratio (TTM) | -- | 0.35 |
| Debt-to-Equity Ratio (TTM) | 0.29 | 0.17 |
| Debt-to-Asset Ratio (TTM) | 0.06 | 0.01 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.57 | -51.94 |
| Interest Coverage Ratio (TTM) | 21.95 | 0.69 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFL and NWG. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AFL
2.07%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
AFL’s Dividend Yield of 2.07% is consistent with its peers in the Insurance - Life industry, providing a dividend return that is standard for its sector.
NWG
3.28%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.16%
- Median
- 3.24%
- Q1
- 2.27%
- Min
- 0.00%
NWG’s Dividend Yield of 3.28% is consistent with its peers in the Banks - Diversified industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AFL
31.03%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
AFL’s Dividend Payout Ratio of 31.03% is within the typical range for the Insurance - Life industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
NWG
0.00%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
NWG has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AFL | NWG |
|---|---|---|
| Dividend Yield (TTM) | 2.07% | 3.28% |
| Dividend Payout Ratio (TTM) | 31.03% | 0.00% |
Valuation
Price-to-Earnings Ratio
AFL
15.85
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
AFL’s P/E Ratio of 15.85 is within the middle range for the Insurance - Life industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
NWG
7.87
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.37
- Median
- 11.90
- Q1
- 9.29
- Min
- 7.43
In the lower quartile for the Banks - Diversified industry, NWG’s P/E Ratio of 7.87 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
AFL
2.40
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
A Forward PEG Ratio of 2.40 places AFL in the upper quartile for the Insurance - Life industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
NWG
0.65
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.41
- Median
- 1.15
- Q1
- 0.77
- Min
- 0.45
In the lower quartile for the Banks - Diversified industry, NWG’s Forward PEG Ratio of 0.65 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
AFL
3.31
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
AFL’s P/S Ratio of 3.31 is in the upper echelon for the Insurance - Life industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
NWG
2.06
Banks - Diversified Industry
- Max
- 4.15
- Q3
- 2.92
- Median
- 2.29
- Q1
- 1.83
- Min
- 0.94
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
Price-to-Book Ratio
AFL
2.16
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
AFL’s P/B Ratio of 2.16 is in the upper tier for the Insurance - Life industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
NWG
0.95
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.47
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
NWG’s P/B Ratio of 0.95 is in the lower quartile for the Banks - Diversified industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AFL | NWG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 15.85 | 7.87 |
| Forward PEG Ratio (TTM) | 2.40 | 0.65 |
| Price-to-Sales Ratio (P/S, TTM) | 3.31 | 2.06 |
| Price-to-Book Ratio (P/B, TTM) | 2.16 | 0.95 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 23.10 | 77.79 |
| EV-to-EBITDA (TTM) | 13.45 | -29.91 |
| EV-to-Sales (TTM) | 3.46 | -2.79 |