Financial Analysis: Deutsche Bank Aktiengesellschaft (NYSE:DB) versus Central Pacific Financial (NYSE:CPF)

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

Analyst Recommendations

This is a summary of current recommendations for Deutsche Bank Aktiengesellschaft and Central Pacific Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank Aktiengesellschaft	0	4	1	0	2.20
Central Pacific Financial	0	0	1	0	3.00

Central Pacific Financial has a consensus price target of $24.00, indicating a potential upside of 13.31%. Given Central Pacific Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Central Pacific Financial is more favorable than Deutsche Bank Aktiengesellschaft.

Valuation & Earnings

This table compares Deutsche Bank Aktiengesellschaft and Central Pacific Financial’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$57.66 billion	0.62	$6.85 billion	$2.29	7.50
Central Pacific Financial	$243.41 million	2.35	$58.67 million	$2.05	10.33

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

Risk and Volatility

Deutsche Bank Aktiengesellschaft has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Central Pacific Financial has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Institutional and Insider Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are held by institutional investors. Comparatively, 88.4% of Central Pacific Financial shares are held by institutional investors. 2.3% of Central Pacific Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank Aktiengesellschaft	6.68%	5.47%	0.31%
Central Pacific Financial	16.44%	11.34%	0.73%

Summary

Central Pacific Financial beats Deutsche Bank Aktiengesellschaft on 9 of the 13 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 Central Pacific Financial

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.