Contrasting Commonwealth Bank of Australia (OTCMKTS:CMWAY) & Commerzbank (OTCMKTS:CRZBY)

Commerzbank (OTCMKTS:CRZBY) and Commonwealth Bank of Australia (OTCMKTS:CMWAY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Commerzbank and Commonwealth Bank of Australia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	5	2	1	2.50
Commonwealth Bank of Australia	1	0	0	1	2.50

Commonwealth Bank of Australia has a consensus price target of $130.18, indicating a potential upside of 8.39%. Given Commonwealth Bank of Australia’s higher possible upside, analysts clearly believe Commonwealth Bank of Australia is more favorable than Commerzbank.

Profitability

This table compares Commerzbank and Commonwealth Bank of Australia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerzbank	11.03%	7.29%	0.45%
Commonwealth Bank of Australia	N/A	N/A	N/A

Dividends

Commerzbank pays an annual dividend of $0.52 per share and has a dividend yield of 1.4%. Commonwealth Bank of Australia pays an annual dividend of $3.29 per share and has a dividend yield of 2.7%. Commerzbank pays out 22.9% of its earnings in the form of a dividend.

Volatility & Risk

Commerzbank has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Commonwealth Bank of Australia has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Earnings and Valuation

This table compares Commerzbank and Commonwealth Bank of Australia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$25.96 billion	1.58	$2.90 billion	$2.27	16.05
Commonwealth Bank of Australia	$61.51 billion	3.27	$6.55 billion	N/A	N/A

Commonwealth Bank of Australia has higher revenue and earnings than Commerzbank.

Insider and Institutional Ownership

0.0% of Commonwealth Bank of Australia shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Commonwealth Bank of Australia beats Commerzbank on 8 of the 12 factors compared between the two stocks.

About Commerzbank

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.

About Commonwealth Bank of Australia

Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides institutional banking services; funds management, superannuation, and share broking products and services; home, car, health, life, income protection, and travel insurance products, as well as retail, premium, business, offshore services. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.