Nu Holdings Ltd. (NU) vs NatWest Group plc (NWG)

Nu Holdings Ltd. and NatWest Group plc are both Banks Regional companies. Nu Holdings Ltd. and NatWest Group plc are of similar size ($72.0B and $65.9B). NatWest Group plc trades at the lower P/E: 10.4× against 18.4×. Nu Holdings Ltd. grew revenue faster over the last twelve months: 50.5% against 35.8%. Nu Holdings Ltd. has the higher net margin (18.7% vs 18.5%) and the higher return on invested capital (62.5% vs 0.00%). Across the 17 metrics below, NatWest Group plc leads on 9 and Nu Holdings Ltd. on 8.

Valuation

Metric NU NWG Banks Regional median
P/E 18.36 10.45 12.15
P/S 3.41 1.91 2.37
P/B 4.98 1.26 1.21
Price to free cash flow n/m 4.20 10.80
EV/EBITDA 70.20 n/m —
EV/Sales 2.95 (2.16) 2.27
Earnings yield 5.45% 9.57% 8.11%
Free cash flow yield (2.53%) 23.82% 8.98%

Profitability

Metric NU NWG Banks Regional median
Gross margin 71.67% 55.71% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 18.65% 18.54% 18.66%
Free cash flow margin (8.63%) 0.00% 21.18%
Return on equity 31.60% 0.00% 10.64%
Return on assets 4.96% 0.00% 1.13%
Return on invested capital 62.53% 0.00% 8.33%

Growth

Metric NU NWG Banks Regional median
Revenue growth (TTM) 50.52% 35.80% 6.61%
EPS growth (last fiscal year) 45.00% 31.62% —
Revenue growth, 5-year CAGR 84.54% 18.23% 12.30%
Net income growth, 5-year CAGR 0.00% 0.00% 9.71%

Health

Metric NU NWG Banks Regional median
Debt to equity 0.35 0.15 0.22
Current ratio 0.55 1.03 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric NU NWG Banks Regional median
Dividend yield — 7.66% 3.75%
Payout ratio 0.00 0.31 0.27

Size

Metric NU NWG Banks Regional median
Market cap 65.90b 71.97b 921.07m

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