Critical Survey: First Community Bankshares (NASDAQ:FCBC) versus Deutsche Bank Aktiengesellschaft (NYSE:DB)

Deutsche Bank Aktiengesellschaft (NYSE:DB) and First Community Bankshares (NASDAQ:FCBC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Deutsche Bank Aktiengesellschaft has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, First Community Bankshares has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank Aktiengesellschaft	5.58%	4.63%	0.26%
First Community Bankshares	28.30%	11.33%	1.74%

Institutional & Insider Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are owned by institutional investors. Comparatively, 35.0% of First Community Bankshares shares are owned by institutional investors. 3.7% of First Community Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Deutsche Bank Aktiengesellschaft and First Community Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank Aktiengesellschaft	0	2	1	0	2.33
First Community Bankshares	0	1	0	0	2.00

First Community Bankshares has a consensus target price of $38.00, indicating a potential downside of 6.75%. Given First Community Bankshares’ higher probable upside, analysts clearly believe First Community Bankshares is more favorable than Deutsche Bank Aktiengesellschaft.

Dividends

Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 1.5%. First Community Bankshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.0%. Deutsche Bank Aktiengesellschaft pays out 9.2% of its earnings in the form of a dividend. First Community Bankshares pays out 45.8% 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. First Community Bankshares has raised its dividend for 13 consecutive years. First Community Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Deutsche Bank Aktiengesellschaft and First Community Bankshares’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$29.17 billion	1.01	$6.85 billion	$2.29	6.24
First Community Bankshares	$158.16 million	4.73	$48.02 million	$2.71	15.04

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

Summary

First Community Bankshares beats Deutsche Bank Aktiengesellschaft on 11 of the 17 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 First Community Bankshares

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.