Commerzbank (ETR:CBK) and DWS Group GmbH & Co. KGaA (ETR:DWS) are both mid-cap financial services companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Dividends
Commerzbank pays an annual dividend of €0.20 per share and has a dividend yield of 4.0%. DWS Group GmbH & Co. KGaA pays an annual dividend of €1.81 per share and has a dividend yield of 4.7%. Commerzbank pays out -8.6% of its earnings in the form of a dividend. DWS Group GmbH & Co. KGaA pays out 65.1% 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.
Profitability
This table compares Commerzbank and DWS Group GmbH & Co. KGaA's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Commerzbank | N/A | N/A | N/A |
DWS Group GmbH & Co. KGaA | N/A | N/A | N/A |
Earnings & Valuation
This table compares Commerzbank and DWS Group GmbH & Co. KGaA's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Commerzbank | $6.56 billion | 0.97 | $-2,917,998,650.88 | (€2.33) | -2.17 |
DWS Group GmbH & Co. KGaA | $3.35 billion | 2.28 | $556 million | €2.78 | 13.75 |
DWS Group GmbH & Co. KGaA has lower revenue, but higher earnings than Commerzbank. Commerzbank is trading at a lower price-to-earnings ratio than DWS Group GmbH & Co. KGaA, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Commerzbank and DWS Group GmbH & Co. KGaA, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Commerzbank | 6 | 8 | 2 | 0 | 1.75 |
DWS Group GmbH & Co. KGaA | 0 | 2 | 11 | 0 | 2.85 |
Commerzbank presently has a consensus price target of €5.37, indicating a potential upside of 6.26%. DWS Group GmbH & Co. KGaA has a consensus price target of €38.58, indicating a potential upside of 0.93%. Given Commerzbank's higher possible upside, equities analysts plainly believe Commerzbank is more favorable than DWS Group GmbH & Co. KGaA.
Summary
DWS Group GmbH & Co. KGaA beats Commerzbank on 7 of the 10 factors compared between the two stocks.