Deutsche Bank Aktiengesellschaft (NYSE:DB) & UniCredit (OTCMKTS:UNCRY) Critical Analysis

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

Analyst Ratings

This is a summary of current ratings and target prices for Deutsche Bank Aktiengesellschaft and UniCredit, 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
UniCredit	0	1	3	2	3.17

Profitability

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

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

Volatility and Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$68.84 billion	0.80	$7.47 billion	$3.43	8.29
UniCredit	$41.32 billion	2.49	$12.35 billion	N/A	N/A

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

Institutional and Insider Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are held by institutional investors. Comparatively, 0.3% of UniCredit shares are held by institutional investors. 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.

Summary

UniCredit beats Deutsche Bank Aktiengesellschaft on 7 of the 11 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 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.