Comparing Deutsche Bank Aktiengesellschaft (NYSE:DB) & Commonwealth Bank of Australia (OTCMKTS:CMWAY)

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

Valuation and Earnings

This table compares Deutsche Bank Aktiengesellschaft and Commonwealth Bank of Australia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$32.22 billion	1.95	$7.47 billion	$3.63	8.93
Commonwealth Bank of Australia	$61.51 billion	3.21	$6.55 billion	N/A	N/A

Deutsche Bank Aktiengesellschaft has higher earnings, but lower revenue than Commonwealth Bank of Australia.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank Aktiengesellschaft	10.43%	7.69%	0.44%
Commonwealth Bank of Australia	N/A	N/A	N/A

Dividends

Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 0.7%. Commonwealth Bank of Australia pays an annual dividend of $3.18 per share and has a dividend yield of 2.7%. Deutsche Bank Aktiengesellschaft pays out 5.8% of its earnings in the form of a dividend. Deutsche Bank Aktiengesellschaft has increased its dividend for 4 consecutive years.

Insider and Institutional Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are owned by institutional investors. Comparatively, 0.0% of Commonwealth Bank of Australia shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

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, Commonwealth Bank of Australia has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Deutsche Bank Aktiengesellschaft and Commonwealth Bank of Australia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank Aktiengesellschaft	0	6	5	0	2.45
Commonwealth Bank of Australia	1	1	0	0	1.50

Commonwealth Bank of Australia has a consensus target price of $130.18, suggesting a potential upside of 10.33%. Given Commonwealth Bank of Australia’s higher possible upside, analysts clearly believe Commonwealth Bank of Australia is more favorable than Deutsche Bank Aktiengesellschaft.

Summary

Deutsche Bank Aktiengesellschaft beats Commonwealth Bank of Australia on 8 of the 14 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 Commonwealth Bank of Australia

Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides institutional banking services; funds management, superannuation, and share broking products and services; home, car, health, life, income protection, and travel insurance products, as well as retail, premium, business, offshore services. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.