Analyzing NatWest Group (NYSE:NWG) and Deutsche Bank Aktiengesellschaft (NYSE:DB)

NatWest Group (NYSE:NWG) and Deutsche Bank Aktiengesellschaft (NYSE:DB) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Earnings & Valuation

This table compares NatWest Group and Deutsche Bank Aktiengesellschaft”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NatWest Group	$16.09 billion	3.85	$6.14 billion	$1.72	8.97
Deutsche Bank Aktiengesellschaft	$31.58 billion	2.28	$4.70 billion	$2.71	13.35

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

Institutional and Insider Ownership

1.3% of NatWest Group shares are held by institutional investors. Comparatively, 27.9% of Deutsche Bank Aktiengesellschaft 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.

Risk & Volatility

NatWest Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Dividends

NatWest Group pays an annual dividend of $0.49 per share and has a dividend yield of 3.2%. Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 0.6%. NatWest Group pays out 28.5% of its earnings in the form of a dividend. Deutsche Bank Aktiengesellschaft pays out 7.8% 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. Deutsche Bank Aktiengesellschaft has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for NatWest Group and Deutsche Bank Aktiengesellschaft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NatWest Group	2	0	2	1	2.40
Deutsche Bank Aktiengesellschaft	1	5	4	1	2.45

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NatWest Group	18.18%	12.77%	0.73%
Deutsche Bank Aktiengesellschaft	7.99%	6.13%	0.36%

Summary

Deutsche Bank Aktiengesellschaft beats NatWest Group on 8 of the 15 factors compared between the two stocks.

About NatWest Group

NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Private Banking, and Commercial & Institutional segments. The Retail Banking segment offers a range of banking products and related financial services, such as current accounts, mortgages, personal unsecured lending, and personal deposits, as well as mobile and online banking services. The Private Banking segment provides private banking and wealth management products for high-net-worth individuals and their business interests. The Commercial & Institutional segment offers banking and financial solutions to large corporate organisations, multi-nationals, and financial institutions. The company was formerly known as The Royal Bank of Scotland Group plc and changed its name to NatWest Group plc in July 2020. NatWest Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

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.