Contrasting Deutsche Bank Aktiengesellschaft (NYSE:DB) & Bank Of Montreal (NYSE:BMO)

Deutsche Bank Aktiengesellschaft (NYSE:DB) and Bank Of Montreal (NYSE:BMO) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Deutsche Bank Aktiengesellschaft and Bank Of Montreal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank Aktiengesellschaft	0	2	4	1	2.86
Bank Of Montreal	0	7	1	0	2.13

Bank Of Montreal has a consensus target price of $129.50, indicating a potential upside of 14.97%. Given Bank Of Montreal’s higher possible upside, analysts clearly believe Bank Of Montreal is more favorable than Deutsche Bank Aktiengesellschaft.

Profitability

This table compares Deutsche Bank Aktiengesellschaft and Bank Of Montreal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank Aktiengesellschaft	5.76%	4.61%	0.27%
Bank Of Montreal	10.25%	10.15%	0.55%

Volatility and Risk

Deutsche Bank Aktiengesellschaft has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Bank Of Montreal has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Institutional & Insider Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are held by institutional investors. Comparatively, 45.8% of Bank Of Montreal shares are held by institutional investors. 1.0% of Bank Of Montreal shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Deutsche Bank Aktiengesellschaft and Bank Of Montreal”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$71.84 billion	0.82	$4.70 billion	$1.68	17.51
Bank Of Montreal	$58.27 billion	1.39	$5.38 billion	$7.71	14.61

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

Summary

Bank Of Montreal beats Deutsche Bank Aktiengesellschaft on 10 of the 15 factors compared between the two stocks.

About Deutsche Bank Aktiengesellschaft

Deutsche Bank Aktiengesellschaft, a stock corporation, provides corporate and investment banking, and asset management products and services to private individuals, corporate entities, and institutional clients in Germany, the United Kingdom, rest of Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. It operates through Corporate Bank, Investment Bank, Private Bank, and Asset Management segments. The Corporate Bank segment offers cash management, trade finance and lending, trust and agency, and securities services, as well as risk management solutions. The Investment Bank segment provides debt origination, merger and acquisitions, foreign exchange, and equity advisory and origination platform services. The Private Bank segment offers payment and account services, and credit and deposit products, as well as investment advice products, such as environmental, social, and governance products. This segment also provides banking, wealth management, other financial, and postal and parcel services; and supports in planning, managing and investing wealth, financing personal and business interests, and servicing institutional and corporate needs. The Asset Management segment offers investment solutions, such as alternative investments, which include real estate, infrastructure, liquid real assets, and sustainable investments; and various other services, including insurance and pension solutions, asset liability management, portfolio management solutions, and asset allocation advisory to individuals and institutions. Deutsche Bank Aktiengesellschaft was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

About Bank Of Montreal

Bank of Montreal provides diversified financial services primarily in North America. It operates through Canadian P&C, U.S P&C, BMO Wealth Management, and BMO Capital Markets segments. The company’s personal banking products and services include deposits, mortgages, home lending, consumer credit, small business lending, credit cards, cash management, financial and investment advice, and other banking services; and commercial banking products and services comprise various of financing options and treasury and payment solutions, as well as risk management products. It also offers investing, banking, and wealth management advisory; digital investing services; financial solutions for individuals, families, and businesses; provides investment management services to institutional, retail, and high net worth investors; and diversified insurance, and wealth and pension de-risking solutions. In addition, the company provides individual life, critical illness and annuity products, as well as segregated funds, and group creditor and travel insurance to customers; debt and equity capital-raising, loan origination and syndication, balance sheet management, treasury management, mergers and acquisitions advice, restructurings and recapitalizations, trade finance, and risk mitigation services, as well as a range of banking and other operating services. Further, the company offers research and access to financial markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions related to debt, foreign exchange, interest rates, credit, equities, securitization, and commodities; provides new product development and origination services, as well as risk management and advisory services for hedging strategies, including in interest rates, foreign exchange rates and commodities prices; and funding and liquidity management services. The company was founded in 1817 and is headquartered in Montreal, Canada.