Deutsche Bank (DB) versus Its Peers Financial Analysis

Deutsche Bank (NYSE: DB) is one of 303 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Deutsche Bank to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Insider and Institutional Ownership

20.9% of Deutsche Bank shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Deutsche Bank and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Deutsche Bank $44.58 billion -$1.55 billion -31.49
Deutsche Bank Competitors $5.50 billion $827.87 million 387.70

Deutsche Bank has higher revenue, but lower earnings than its peers. Deutsche Bank is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Deutsche Bank pays an annual dividend of $0.21 per share and has a dividend yield of 1.1%. Deutsche Bank pays out -35.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend.

Volatility & Risk

Deutsche Bank has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Deutsche Bank’s peers have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Deutsche Bank and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deutsche Bank 4 6 1 0 1.73
Deutsche Bank Competitors 2253 8660 8657 359 2.36

Deutsche Bank currently has a consensus price target of $18.03, suggesting a potential downside of 2.96%. As a group, “Banks” companies have a potential downside of 9.63%. Given Deutsche Bank’s higher possible upside, research analysts plainly believe Deutsche Bank is more favorable than its peers.

Profitability

This table compares Deutsche Bank and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deutsche Bank -0.42% 3.65% 0.16%
Deutsche Bank Competitors 18.94% 8.30% 0.94%

Summary

Deutsche Bank peers beat Deutsche Bank on 11 of the 15 factors compared.

Deutsche Bank Company Profile

Deutsche Bank AG is a bank and holding company for its subsidiaries. The Company offers a range of investment, financial and related products and services to private individuals, corporate entities and institutional clients. It operates through six divisions: Global Markets, which offers financial products, including trading and hedging services to institutions and corporate clients; Corporate & Investment Banking, which brings together its commercial banking, corporate finance and transaction banking capability; Private, Wealth and Commercial Clients, which combines its capability in private and commercial banking, as well as in wealth management solutions; Deutsche Asset Management, whose investment capabilities span both active and passive strategies and an array of asset classes, including equities, fixed income, real estate and sustainable investments; Postbank, which is a German financial service provider for retail, business and corporate clients, and Non-Core Operations Unit.

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