Financial Review: Barclays (NYSE:BCS) & Deutsche Bank Aktiengesellschaft (NYSE:DB)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Deutsche Bank Aktiengesellschaft and Barclays, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank Aktiengesellschaft	1	5	4	1	2.45
Barclays	0	2	4	0	2.67

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank Aktiengesellschaft	7.99%	6.13%	0.36%
Barclays	21.26%	8.19%	0.39%

Dividends

Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 0.6%. Barclays pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. Deutsche Bank Aktiengesellschaft pays out 7.8% of its earnings in the form of a dividend. Barclays pays out 14.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Deutsche Bank Aktiengesellschaft has raised its dividend for 4 consecutive years.

Volatility & Risk

Deutsche Bank Aktiengesellschaft has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Barclays has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Earnings and Valuation

This table compares Deutsche Bank Aktiengesellschaft and Barclays”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$31.58 billion	2.24	$4.70 billion	$2.71	13.13
Barclays	$34.23 billion	2.33	$8.06 billion	$2.17	10.56

Barclays has higher revenue and earnings than Deutsche Bank Aktiengesellschaft. Barclays 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.

Insider and Institutional Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are held by institutional investors. Comparatively, 3.4% of Barclays shares are held by institutional investors. 0.0% of Barclays shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Barclays beats Deutsche Bank Aktiengesellschaft on 10 of the 16 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 Barclays

Barclays PLC provides various financial services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International division segments. It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. In addition, the company engages in securities dealing activities. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.