Deutsche Bank Aktiengesellschaft (NYSE:DB) and The Bank of New York Mellon (NYSE:BK) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Analyst Recommendations
This is a summary of current ratings and target prices for Deutsche Bank Aktiengesellschaft and The Bank of New York Mellon, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Deutsche Bank Aktiengesellschaft | 5 | 6 | 1 | 0 | 1.67 |
| The Bank of New York Mellon | 0 | 7 | 10 | 0 | 2.59 |
The Bank of New York Mellon has a consensus target price of $49.40, suggesting a potential upside of 0.73%. Given The Bank of New York Mellon's stronger consensus rating and higher probable upside, analysts clearly believe The Bank of New York Mellon is more favorable than Deutsche Bank Aktiengesellschaft.
Earnings & Valuation
This table compares Deutsche Bank Aktiengesellschaft and The Bank of New York Mellon's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Deutsche Bank Aktiengesellschaft | $38.72 billion | 0.66 | $-6,036,800,000.00 | ($3.04) | -4.07 |
| The Bank of New York Mellon | $20.77 billion | 2.06 | $4.44 billion | $4.02 | 12.16 |
The Bank of New York Mellon has lower revenue, but higher earnings than Deutsche Bank Aktiengesellschaft. Deutsche Bank Aktiengesellschaft is trading at a lower price-to-earnings ratio than The Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
24.7% of Deutsche Bank Aktiengesellschaft shares are owned by institutional investors. Comparatively, 82.3% of The Bank of New York Mellon shares are owned by institutional investors. 0.1% of The Bank of New York Mellon shares are owned by insiders. 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 and Volatility
Deutsche Bank Aktiengesellschaft has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, The Bank of New York Mellon has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
Profitability
This table compares Deutsche Bank Aktiengesellschaft and The Bank of New York Mellon's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Deutsche Bank Aktiengesellschaft | -3.92% | -1.94% | -0.09% |
| The Bank of New York Mellon | 23.09% | 9.89% | 0.89% |
Summary
The Bank of New York Mellon beats Deutsche Bank Aktiengesellschaft on 12 of the 14 factors compared between the two stocks.
