Itau Unibanco (NYSE:ITUB) versus Deutsche Bank Aktiengesellschaft (NYSE:DB) Financial Survey

Itau Unibanco (NYSE:ITUB) and Deutsche Bank Aktiengesellschaft (NYSE:DB) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Itau Unibanco and Deutsche Bank Aktiengesellschaft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itau Unibanco	0	2	2	0	2.50
Deutsche Bank Aktiengesellschaft	0	6	4	0	2.40

Itau Unibanco presently has a consensus price target of $9.00, indicating a potential upside of 9.82%. Given Itau Unibanco’s stronger consensus rating and higher probable upside, equities analysts plainly believe Itau Unibanco is more favorable than Deutsche Bank Aktiengesellschaft.

Dividends

Itau Unibanco pays an annual dividend of $0.48 per share and has a dividend yield of 5.9%. Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 0.6%. Itau Unibanco pays out 65.8% of its earnings in the form of a dividend. Deutsche Bank Aktiengesellschaft pays out 5.8% 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 raised its dividend for 4 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Itau Unibanco	27.27%	21.27%	1.54%
Deutsche Bank Aktiengesellschaft	10.43%	7.69%	0.44%

Risk and Volatility

Itau Unibanco has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares Itau Unibanco and Deutsche Bank Aktiengesellschaft”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itau Unibanco	$30.04 billion	3.02	$8.03 billion	$0.73	11.23
Deutsche Bank Aktiengesellschaft	$32.22 billion	2.04	$7.47 billion	$3.63	9.32

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

Institutional and Insider Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are held by institutional investors. 0.6% of Itau Unibanco shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Itau Unibanco beats Deutsche Bank Aktiengesellschaft on 10 of the 17 factors compared between the two stocks.

About Itau Unibanco

Itaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It offers current account; loans; credit and debit cards; investment and commercial banking services; real estate lending services; financing and investment services; economic, financial and brokerage advisory; and leasing and foreign exchange services. The company also provides property and casualty insurance products covering loss, damage, or liabilities for assets or persons, as well as life insurance products covering death and personal accident. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth clients. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. operates as a subsidiary of IUPAR – Itaú Unibanco Participações S.A.

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.