Critical Contrast: Deutsche Pfandbriefbank (OTCMKTS:PBBGF) and Federal National Mortgage Association (OTCMKTS:FNMA)

Deutsche Pfandbriefbank (OTCMKTS:PBBGF) and Federal National Mortgage Association (OTCMKTS:FNMA) are both financial services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Deutsche Pfandbriefbank and Federal National Mortgage Association’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Pfandbriefbank	N/A	N/A	N/A
Federal National Mortgage Association	12.36%	-25.29%	0.40%

Earnings & Valuation

This table compares Deutsche Pfandbriefbank and Federal National Mortgage Association’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Pfandbriefbank	N/A	N/A	N/A	N/A	N/A
Federal National Mortgage Association	$139.99 billion	0.01	$17.41 billion	N/A	N/A

Federal National Mortgage Association has higher revenue and earnings than Deutsche Pfandbriefbank.

Analyst Recommendations

This is a breakdown of current recommendations for Deutsche Pfandbriefbank and Federal National Mortgage Association, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Pfandbriefbank	1	0	0	0	1.00
Federal National Mortgage Association	0	0	1	0	3.00

Federal National Mortgage Association has a consensus price target of $2.00, suggesting a potential upside of 36.99%. Given Federal National Mortgage Association’s stronger consensus rating and higher probable upside, analysts plainly believe Federal National Mortgage Association is more favorable than Deutsche Pfandbriefbank.

Institutional & Insider Ownership

0.0% of Federal National Mortgage Association shares are owned by institutional investors. 1.0% of Federal National Mortgage Association shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Federal National Mortgage Association beats Deutsche Pfandbriefbank on 8 of the 9 factors compared between the two stocks.

About Deutsche Pfandbriefbank

Deutsche Pfandbriefbank AG provides commercial real estate and public investment finance in Europe and the United States of America. It operates through Real Estate Finance and Non-Core segments. The Real Estate Finance segment provides financing for professional real estate investors, which includes professional national and international real estate companies, institutional investors, and property funds to financed properties comprising office buildings, properties for residential use, retail, and logistic properties, as well as hotel business. Its Non-Core segment offers financing eligible for Pfandbrief cover for the provision and improvement of public infrastructure and financing to the public sector that is not specifically earmarked for a particular purpose. Deutsche Pfandbriefbank AG is headquartered in Garching, Germany.

About Federal National Mortgage Association

Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.