Head to Head Contrast: Western Alliance Bancorporation (NYSE:WAL) & Deutsche Bank Aktiengesellschaft (NYSE:DB)

Western Alliance Bancorporation (NYSE:WALGet Rating) and Deutsche Bank Aktiengesellschaft (NYSE:DBGet Rating) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Western Alliance Bancorporation and Deutsche Bank Aktiengesellschaft, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Alliance Bancorporation 0 0 7 0 3.00
Deutsche Bank Aktiengesellschaft 1 8 5 0 2.29

Western Alliance Bancorporation currently has a consensus price target of $126.86, indicating a potential upside of 66.76%. Deutsche Bank Aktiengesellschaft has a consensus price target of $14.14, indicating a potential upside of 45.65%. Given Western Alliance Bancorporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Western Alliance Bancorporation is more favorable than Deutsche Bank Aktiengesellschaft.

Earnings & Valuation

This table compares Western Alliance Bancorporation and Deutsche Bank Aktiengesellschaft’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Alliance Bancorporation $2.06 billion 3.99 $899.20 million $8.99 8.46
Deutsche Bank Aktiengesellschaft $36.51 billion N/A $2.90 billion $1.38 7.04

Deutsche Bank Aktiengesellschaft has higher revenue and earnings than Western Alliance Bancorporation. Deutsche Bank Aktiengesellschaft is trading at a lower price-to-earnings ratio than Western Alliance Bancorporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Western Alliance Bancorporation and Deutsche Bank Aktiengesellschaft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Alliance Bancorporation 41.03% 21.77% 1.76%
Deutsche Bank Aktiengesellschaft 8.07% 4.27% 0.22%

Institutional & Insider Ownership

87.2% of Western Alliance Bancorporation shares are owned by institutional investors. 2.8% of Western Alliance Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Western Alliance Bancorporation has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Summary

Western Alliance Bancorporation beats Deutsche Bank Aktiengesellschaft on 11 of the 13 factors compared between the two stocks.

About Western Alliance Bancorporation (Get Rating)

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates in Commercial, Consumer Related, and Corporate & Other segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; and treasury management and residential mortgage products and services. It also offers commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services. Further, it holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. The company operates 36 branch locations, as well as loan production offices. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

About Deutsche Bank Aktiengesellschaft (Get Rating)

Deutsche Bank Aktiengesellschaft provides investment, financial, and related products and services to private individuals, corporate entities, and institutional clients worldwide. Its Corporate Bank segment provides cash management, trade finance and lending, trust and agency, foreign exchange, and securities services, as well as risk management solutions. The company's Investment Bank segment offers merger and acquisitions, and equity advisory services. This segment also focuses on financing, advisory, fixed income, risk management, sales and trading, and currencies. Its Private Bank segment provides payment and account services, and credit and deposit products, as well as investment advice, such as environmental, social, and governance products. This segment also provides wealth management, postal and parcel services, and digital offerings. The company's Asset Management segment provides investment solutions, such as alternative investments, which include real estate, infrastructure, private equity, liquid real assets, and sustainable investments; passive investments; and various services, including insurance and pension solutions, asset liability management, portfolio management solutions, asset allocation advisory, structuring, and overlay to institutions, governments, corporations and foundations, and individual investors. As of December 31, 2021, it operated 1,709 branches in 58 countries. The company was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

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