Critical Survey: Commerzbank (CRZBY) and Its Competitors

Commerzbank (OTCMKTS:CRZBY) is one of 85 publicly-traded companies in the “BANKS – FOREIGN” industry, but how does it weigh in compared to its rivals? We will compare Commerzbank to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, analyst recommendations and dividends.

Dividends

Commerzbank pays an annual dividend of $0.52 per share and has a dividend yield of 1.6%. Commerzbank pays out 22.2% of its earnings in the form of a dividend. As a group, “BANKS – FOREIGN” companies pay a dividend yield of 3.8% and pay out 38.6% of their earnings in the form of a dividend.

Insider & Institutional Ownership

24.9% of shares of all “BANKS – FOREIGN” companies are owned by institutional investors. 5.1% of shares of all “BANKS – FOREIGN” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Commerzbank and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Commerzbank	$25.96 billion	$2.90 billion	13.64
Commerzbank Competitors	$40.09 billion	$6.80 billion	10.67

Commerzbank’s rivals have higher revenue and earnings than Commerzbank. Commerzbank is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Commerzbank and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	2	2	0	2.50
Commerzbank Competitors	1167	3599	3432	212	2.32

As a group, “BANKS – FOREIGN” companies have a potential upside of 14.64%. Given Commerzbank’s rivals higher probable upside, analysts plainly believe Commerzbank has less favorable growth aspects than its rivals.

Risk and Volatility

Commerzbank has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Commerzbank’s rivals have a beta of 0.77, meaning that their average stock price is 23% less volatile than the S&P 500.

Profitability

This table compares Commerzbank and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerzbank	9.99%	7.28%	0.45%
Commerzbank Competitors	16.63%	12.94%	1.07%

Summary

Commerzbank rivals beat Commerzbank on 11 of the 15 factors compared.

Commerzbank Company Profile

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.