Critical Comparison: Deutsche Bank Aktiengesellschaft (NYSE:DB) versus UniCredit (OTCMKTS:UNCRY)

UniCredit (OTCMKTS:UNCRY) and Deutsche Bank Aktiengesellschaft (NYSE:DB) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UniCredit	$41.32 billion	2.71	$12.35 billion	N/A	N/A
Deutsche Bank Aktiengesellschaft	$68.84 billion	N/A	$7.47 billion	$3.43	8.74

UniCredit has higher earnings, but lower revenue than Deutsche Bank Aktiengesellschaft.

Risk and Volatility

UniCredit has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for UniCredit and Deutsche Bank Aktiengesellschaft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniCredit	0	1	3	2	3.17
Deutsche Bank Aktiengesellschaft	1	5	4	1	2.45

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UniCredit	32.88%	26.06%	2.08%
Deutsche Bank Aktiengesellschaft	10.02%	7.44%	0.43%

Institutional and Insider Ownership

0.3% of UniCredit shares are held by institutional investors. Comparatively, 27.9% of Deutsche Bank Aktiengesellschaft shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

UniCredit beats Deutsche Bank Aktiengesellschaft on 6 of the 10 factors compared between the two stocks.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.

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.