Carter Bankshares (NASDAQ:CARE – Get Free Report) and NatWest Group (NYSE:NWG – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Dividends
Carter Bankshares pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. NatWest Group pays an annual dividend of $0.63 per share and has a dividend yield of 3.6%. Carter Bankshares pays out 6.9% of its earnings in the form of a dividend. NatWest Group pays out 31.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Earnings and Valuation
This table compares Carter Bankshares and NatWest Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carter Bankshares | $214.28 million | 3.15 | $31.00 million | $5.81 | 5.24 |
| NatWest Group | $17.50 billion | 3.92 | $7.69 billion | $2.01 | 8.59 |
NatWest Group has higher revenue and earnings than Carter Bankshares. Carter Bankshares is trading at a lower price-to-earnings ratio than NatWest Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations for Carter Bankshares and NatWest Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carter Bankshares | 0 | 4 | 1 | 0 | 2.20 |
| NatWest Group | 0 | 5 | 5 | 1 | 2.64 |
Carter Bankshares presently has a consensus price target of $30.75, indicating a potential upside of 0.97%. Given Carter Bankshares’ higher possible upside, equities research analysts clearly believe Carter Bankshares is more favorable than NatWest Group.
Insider and Institutional Ownership
41.5% of Carter Bankshares shares are owned by institutional investors. Comparatively, 1.3% of NatWest Group shares are owned by institutional investors. 2.4% of Carter Bankshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Carter Bankshares and NatWest Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carter Bankshares | 36.79% | 7.46% | 0.73% |
| NatWest Group | 20.10% | 14.01% | 0.82% |
Volatility & Risk
Carter Bankshares has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, NatWest Group has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
Summary
NatWest Group beats Carter Bankshares on 11 of the 17 factors compared between the two stocks.
About Carter Bankshares
Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.
About NatWest Group
NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Private Banking, and Commercial & Institutional segments. The Retail Banking segment offers a range of banking products and related financial services, such as current accounts, mortgages, personal unsecured lending, and personal deposits, as well as mobile and online banking services. The Private Banking segment provides private banking and wealth management products for high-net-worth individuals and their business interests. The Commercial & Institutional segment offers banking and financial solutions to large corporate organisations, multi-nationals, and financial institutions. The company was formerly known as The Royal Bank of Scotland Group plc and changed its name to NatWest Group plc in July 2020. NatWest Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.
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