Bank of New York Mellon (NYSE:BK) and Deutsche Bank (NYSE:DB) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Profitability
This table compares Bank of New York Mellon and Deutsche Bank's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Bank of New York Mellon | 21.60% | 10.59% | 1.00% |
| Deutsche Bank | -16.53% | -8.63% | -0.39% |
Earnings and Valuation
This table compares Bank of New York Mellon and Deutsche Bank's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Bank of New York Mellon | $20.77 billion | 1.64 | $4.44 billion | $4.02 | 9.55 |
| Deutsche Bank | $38.72 billion | 0.52 | $-6,036,800,000.00 | ($3.04) | -3.20 |
Bank of New York Mellon has higher earnings, but lower revenue than Deutsche Bank. Deutsche Bank is trading at a lower price-to-earnings ratio than Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
81.7% of Bank of New York Mellon shares are owned by institutional investors. Comparatively, 24.8% of Deutsche Bank shares are owned by institutional investors. 0.1% of Bank of New York Mellon shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Bank of New York Mellon has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Deutsche Bank has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Bank of New York Mellon and Deutsche Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Bank of New York Mellon | 1 | 8 | 9 | 0 | 2.44 |
| Deutsche Bank | 8 | 5 | 0 | 0 | 1.38 |
Bank of New York Mellon presently has a consensus target price of $45.5313, suggesting a potential upside of 18.63%. Deutsche Bank has a consensus target price of $6.93, suggesting a potential downside of 28.70%. Given Bank of New York Mellon's stronger consensus rating and higher possible upside, research analysts plainly believe Bank of New York Mellon is more favorable than Deutsche Bank.
Summary
Bank of New York Mellon beats Deutsche Bank on 12 of the 14 factors compared between the two stocks.
