HDFC Bank Limited (HDB) vs NatWest Group plc (NWG)

HDFC Bank Limited and NatWest Group plc are both Banks Regional companies. HDFC Bank Limited is the larger, with a market value of $120.7B against $72.0B — 1.7× the size. NatWest Group plc trades at the lower P/E: 10.4× against 15.5×. NatWest Group plc grew revenue faster over the last twelve months: 35.8% against −11.2%. NatWest Group plc has the higher net margin (18.5% vs 17.0%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; NatWest Group plc yields more (7.66% vs 1.30%). Across the 18 metrics below, NatWest Group plc leads on 11 and HDFC Bank Limited on 7.

Valuation

Metric HDB NWG Banks Regional median
P/E 15.53 10.45 12.15
P/S 2.63 1.91 2.37
P/B 1.77 1.26 1.21
Price to free cash flow 3.46 4.20 10.80
EV/EBITDA n/m n/m —
EV/Sales 0.12 (2.16) 2.27
Earnings yield 6.44% 9.57% 8.11%
Free cash flow yield 28.93% 23.82% 8.98%

Profitability

Metric HDB NWG Banks Regional median
Gross margin 57.09% 55.71% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 17.01% 18.54% 18.66%
Free cash flow margin 0.00% 0.00% 21.18%
Return on equity 11.54% 0.00% 10.64%
Return on assets 1.46% 0.00% 1.13%
Return on invested capital 0.00% 0.00% 8.33%

Growth

Metric HDB NWG Banks Regional median
Revenue growth (TTM) (11.19%) 35.80% 6.61%
EPS growth (last fiscal year) (1.22%) 31.62% —
Revenue growth, 5-year CAGR 17.30% 18.23% 12.30%
Net income growth, 5-year CAGR 11.00% 0.00% 9.71%

Health

Metric HDB NWG Banks Regional median
Debt to equity 0.00 0.15 0.22
Current ratio 0.42 1.03 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HDB NWG Banks Regional median
Dividend yield 1.30% 7.66% 3.75%
Payout ratio 0.17 0.31 0.27

Size

Metric HDB NWG Banks Regional median
Market cap 120.71b 71.97b 921.07m

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