Comparing Barclays (NYSE:BCS) & Deutsche Bank Aktiengesellschaft (NYSE:DB)

Barclays (NYSE:BCS) and Deutsche Bank Aktiengesellschaft (NYSE:DB) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Barclays	21.26%	8.19%	0.39%
Deutsche Bank Aktiengesellschaft	7.99%	6.13%	0.36%

Earnings and Valuation

This table compares Barclays and Deutsche Bank Aktiengesellschaft”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barclays	$34.23 billion	2.28	$8.06 billion	$2.17	10.33
Deutsche Bank Aktiengesellschaft	$31.58 billion	2.24	$4.70 billion	$2.71	13.09

Barclays has higher revenue and earnings than Deutsche Bank Aktiengesellschaft. Barclays is trading at a lower price-to-earnings ratio than Deutsche Bank Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.

Dividends

Barclays pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 0.6%. Barclays pays out 14.7% of its earnings in the form of a dividend. Deutsche Bank Aktiengesellschaft pays out 7.8% 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. Deutsche Bank Aktiengesellschaft has increased its dividend for 4 consecutive years.

Risk and Volatility

Barclays has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

3.4% of Barclays shares are owned by institutional investors. Comparatively, 27.9% of Deutsche Bank Aktiengesellschaft shares are owned by institutional investors. 0.0% of Barclays shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Barclays and Deutsche Bank Aktiengesellschaft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barclays	0	2	4	0	2.67
Deutsche Bank Aktiengesellschaft	1	5	4	1	2.45

Summary

Barclays beats Deutsche Bank Aktiengesellschaft on 10 of the 16 factors compared between the two stocks.

About Barclays

Barclays PLC provides various financial services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International division segments. It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. In addition, the company engages in securities dealing activities. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.

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.