Deutsche Beteiligungs (ETR:DBAN) and DWS Group GmbH & Co. KGaA (ETR:DWS) are both financial services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Profitability
This table compares Deutsche Beteiligungs 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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Deutsche Beteiligungs | N/A | N/A | N/A |
DWS Group GmbH & Co. KGaA | N/A | N/A | N/A |
Dividends
Deutsche Beteiligungs pays an annual dividend of €0.80 per share and has a dividend yield of 2.0%. DWS Group GmbH & Co. KGaA pays an annual dividend of €1.81 per share and has a dividend yield of 4.8%. Deutsche Beteiligungs pays out 135.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DWS Group GmbH & Co. KGaA pays out 65.1% of its earnings in the form of a dividend. DWS Group GmbH & Co. KGaA is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent ratings and price targets for Deutsche Beteiligungs and DWS Group GmbH & Co. KGaA, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Deutsche Beteiligungs | 0 | 0 | 5 | 0 | 3.00 |
DWS Group GmbH & Co. KGaA | 0 | 2 | 11 | 0 | 2.85 |
Deutsche Beteiligungs currently has a consensus price target of €45.44, indicating a potential upside of 12.61%. DWS Group GmbH & Co. KGaA has a consensus price target of €38.58, indicating a potential upside of 1.46%. Given Deutsche Beteiligungs' stronger consensus rating and higher probable upside, equities research analysts plainly believe Deutsche Beteiligungs is more favorable than DWS Group GmbH & Co. KGaA.
Valuation & Earnings
This table compares Deutsche Beteiligungs and DWS Group GmbH & Co. KGaA's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Deutsche Beteiligungs | $39.80 million | 15.25 | $8.88 million | €0.59 | 68.39 |
DWS Group GmbH & Co. KGaA | $3.35 billion | 2.27 | $556 million | €2.78 | 13.68 |
DWS Group GmbH & Co. KGaA has higher revenue and earnings than Deutsche Beteiligungs. DWS Group GmbH & Co. KGaA is trading at a lower price-to-earnings ratio than Deutsche Beteiligungs, indicating that it is currently the more affordable of the two stocks.
Summary
DWS Group GmbH & Co. KGaA beats Deutsche Beteiligungs on 6 of the 10 factors compared between the two stocks.