AXP vs. NWG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AXP and NWG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AXP’s market capitalization of 229.88 billion USD is substantially larger than NWG’s 27.15 billion USD, indicating a significant difference in their market valuations.
With betas of 1.25 for AXP 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. AXP, on the other hand, is a domestic entity.
| Symbol | AXP | NWG |
|---|---|---|
| Company Name | American Express Company | NatWest Group plc |
| Country | US | GB |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Banks - Diversified |
| CEO | Stephen Joseph Squeri | John-Paul Thwaite |
| Price | 328.13 USD | 13.44 USD |
| Market Cap | 229.88 billion USD | 27.15 billion USD |
| Beta | 1.25 | 0.98 |
| Exchange | NYSE | NYSE |
| IPO Date | June 1, 1972 | October 18, 2007 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AXP 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
AXP
34.05%
Financial - Credit Services Industry
- Max
- 34.05%
- Q3
- 18.70%
- Median
- 10.57%
- Q1
- 3.55%
- Min
- -12.12%
In the upper quartile for the Financial - Credit Services industry, AXP’s Return on Equity of 34.05% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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
AXP
8.40%
Financial - Credit Services Industry
- Max
- 68.11%
- Q3
- 32.26%
- Median
- 9.52%
- Q1
- 3.37%
- Min
- -7.03%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services 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
AXP
13.64%
Financial - Credit Services Industry
- Max
- 39.42%
- Q3
- 20.10%
- Median
- 12.91%
- Q1
- 5.82%
- Min
- -14.80%
AXP’s Net Profit Margin of 13.64% is aligned with the median group of its peers in the Financial - Credit Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
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
AXP
17.36%
Financial - Credit Services Industry
- Max
- 77.26%
- Q3
- 42.86%
- Median
- 17.99%
- Q1
- 10.82%
- Min
- -14.94%
AXP’s Operating Profit Margin of 17.36% is around the midpoint for the Financial - Credit Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | AXP | NWG |
|---|---|---|
| Return on Equity (TTM) | 34.05% | 13.16% |
| Return on Assets (TTM) | 3.64% | 0.71% |
| Return on Invested Capital (TTM) | 8.40% | 2.95% |
| Net Profit Margin (TTM) | 13.64% | 26.40% |
| Operating Profit Margin (TTM) | 17.36% | 37.76% |
| Gross Profit Margin (TTM) | 82.37% | 119.00% |
Financial Strength
Current Ratio
AXP
0.32
Financial - Credit Services Industry
- Max
- 8.15
- Q3
- 4.39
- Median
- 2.62
- Q1
- 1.06
- Min
- 0.15
For the Financial - Credit Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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
AXP
1.69
Financial - Credit Services Industry
- Max
- 4.69
- Q3
- 2.55
- Median
- 1.20
- Q1
- 0.55
- Min
- 0.00
AXP’s Debt-to-Equity Ratio of 1.69 is typical for the Financial - Credit Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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
AXP
1.59
Financial - Credit Services Industry
- Max
- 17.48
- Q3
- 7.42
- Median
- 1.59
- Q1
- 0.38
- Min
- -7.77
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.
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 | AXP | NWG |
|---|---|---|
| Current Ratio (TTM) | 0.32 | 0.35 |
| Quick Ratio (TTM) | 0.32 | 0.35 |
| Debt-to-Equity Ratio (TTM) | 1.69 | 0.17 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.01 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.03 | -51.94 |
| Interest Coverage Ratio (TTM) | 1.59 | 0.69 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AXP 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
AXP
0.93%
Financial - Credit Services Industry
- Max
- 14.68%
- Q3
- 2.97%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
AXP’s Dividend Yield of 0.93% is consistent with its peers in the Financial - Credit Services 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
AXP
20.01%
Financial - Credit Services Industry
- Max
- 169.58%
- Q3
- 38.15%
- Median
- 18.30%
- Q1
- 0.00%
- Min
- 0.00%
AXP’s Dividend Payout Ratio of 20.01% is within the typical range for the Financial - Credit Services 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 | AXP | NWG |
|---|---|---|
| Dividend Yield (TTM) | 0.93% | 3.28% |
| Dividend Payout Ratio (TTM) | 20.01% | 0.00% |
Valuation
Price-to-Earnings Ratio
AXP
22.38
Financial - Credit Services Industry
- Max
- 42.04
- Q3
- 25.88
- Median
- 12.28
- Q1
- 9.55
- Min
- 3.09
AXP’s P/E Ratio of 22.38 is within the middle range for the Financial - Credit Services 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
AXP
2.10
Financial - Credit Services Industry
- Max
- 2.76
- Q3
- 1.57
- Median
- 0.82
- Q1
- 0.51
- Min
- 0.06
A Forward PEG Ratio of 2.10 places AXP in the upper quartile for the Financial - Credit Services 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
AXP
3.05
Financial - Credit Services Industry
- Max
- 6.24
- Q3
- 3.02
- Median
- 1.54
- Q1
- 0.75
- Min
- 0.32
The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services industry.
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
AXP
7.37
Financial - Credit Services Industry
- Max
- 3.58
- Q3
- 2.84
- Median
- 1.28
- Q1
- 0.84
- Min
- 0.07
At 7.37, AXP’s P/B Ratio is at an extreme premium to the Financial - Credit Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
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 | AXP | NWG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 22.38 | 7.87 |
| Forward PEG Ratio (TTM) | 2.10 | 0.65 |
| Price-to-Sales Ratio (P/S, TTM) | 3.05 | 2.06 |
| Price-to-Book Ratio (P/B, TTM) | 7.37 | 0.95 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.31 | 77.79 |
| EV-to-EBITDA (TTM) | 15.56 | -29.91 |
| EV-to-Sales (TTM) | 3.06 | -2.79 |