Principal Financial vs Nationwide Building Society Which Outperforms?

Principal Financial Group, Inc. and Nationwide Building Society are both prominent financial institutions with strong positions in their respective markets. Principal Financial Group, Inc. is a leading global investment management company, offering a wide range of financial products and services. On the other hand, Nationwide Building Society is a UK-based mutual financial institution, known for its commitment to customer service and community involvement. Both companies have a solid financial performance history, making their stocks attractive options for investors seeking stability and growth potential.

Principal Financial or Nationwide Building Society?

When comparing Principal Financial and Nationwide Building Society, 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 Principal Financial and Nationwide Building Society.

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. Principal Financial has a dividend yield of 4.02%, while Nationwide Building Society has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Principal Financial reports a 5-year dividend growth of 4.36% year and a payout ratio of -316.21%. On the other hand, Nationwide Building Society reports a 5-year dividend growth of 0.00% year and a payout ratio of 7.46%.

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 Principal Financial P/E ratio at -97.62 and Nationwide Building Society's P/E ratio at 0.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Principal Financial P/B ratio is 1.79 while Nationwide Building Society's P/B ratio is 0.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Principal Financial has seen a 5-year revenue growth of 0.14%, while Nationwide Building Society's is 4.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Principal Financial's ROE at -1.86% and Nationwide Building Society's ROE at 8.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $86.19 for Principal Financial and £131.69 for Nationwide Building Society. Over the past year, Principal Financial's prices ranged from $68.97 to $91.98, with a yearly change of 33.36%. Nationwide Building Society's prices fluctuated between £113.00 and £137.00, with a yearly change of 21.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.