Nationwide Building Society vs Principal Financial Which Outperforms?

Nationwide Building Society and Principal Financial Group are two prominent companies in the financial sector with a strong presence in the market. Nationwide Building Society is a UK-based mutual financial institution offering a range of banking and financial services. Principal Financial Group, on the other hand, is a global investment management and retirement solutions provider based in the United States. Both companies have shown resilience and stability in their respective markets, making them attractive investment options for investors seeking long-term growth and security. This comparison will analyze the performance and potential of Nationwide Building Society versus Principal Financial stocks.

Nationwide Building Society or Principal Financial?

When comparing Nationwide Building Society and Principal Financial, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Nationwide Building Society and Principal Financial.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Nationwide Building Society has a dividend yield of -%, while Principal Financial has a dividend yield of 3.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nationwide Building Society reports a 5-year dividend growth of 0.00% year and a payout ratio of 7.46%. On the other hand, Principal Financial reports a 5-year dividend growth of 4.36% year and a payout ratio of -316.21%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Nationwide Building Society P/E ratio at 0.93 and Principal Financial's P/E ratio at -88.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nationwide Building Society P/B ratio is 0.07 while Principal Financial's P/B ratio is 1.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nationwide Building Society has seen a 5-year revenue growth of 0.74%, while Principal Financial's is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nationwide Building Society's ROE at 7.71% and Principal Financial's ROE at -1.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £131.07 for Nationwide Building Society and $79.25 for Principal Financial. Over the past year, Nationwide Building Society's prices ranged from £125.00 to £137.00, with a yearly change of 9.60%. Principal Financial's prices fluctuated between $72.21 and $91.98, with a yearly change of 27.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.