Analyzing Deutsche Bank Aktiengesellschaft (NYSE:DB) and China Construction Bank (OTCMKTS:CICHY)

China Construction Bank (OTCMKTS:CICHYGet Free Report) and Deutsche Bank Aktiengesellschaft (NYSE:DBGet Free Report) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for China Construction Bank and Deutsche Bank Aktiengesellschaft, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Construction Bank 0 1 0 0 2.00
Deutsche Bank Aktiengesellschaft 0 6 4 0 2.40

Deutsche Bank Aktiengesellschaft has a consensus target price of $43.00, indicating a potential upside of 20.12%. Given Deutsche Bank Aktiengesellschaft’s stronger consensus rating and higher probable upside, analysts clearly believe Deutsche Bank Aktiengesellschaft is more favorable than China Construction Bank.

Earnings & Valuation

This table compares China Construction Bank 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
China Construction Bank $181.98 billion 1.49 $47.15 billion $3.66 5.66
Deutsche Bank Aktiengesellschaft $68.84 billion 1.01 $7.47 billion $3.63 9.86

China Construction Bank has higher revenue and earnings than Deutsche Bank Aktiengesellschaft. China Construction Bank 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.

Risk and Volatility

China Construction Bank has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
China Construction Bank 26.72% 9.70% 0.77%
Deutsche Bank Aktiengesellschaft 10.43% 7.69% 0.44%

Summary

China Construction Bank beats Deutsche Bank Aktiengesellschaft on 7 of the 13 factors compared between the two stocks.

About China Construction Bank

(Get Free Report)

China Construction Bank Corporation provides various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Finance Business, Personal Finance Business, Treasury and Asset Management Business, and Others segments. The company accepts various deposits, such as foreign currency, all in one accounts, RMB, corporate term and notification, and corporate demand deposits, as well corporate deposits by agreement. Its loan products include personal business, car, and housing loans; and SME, traditional credit, commercial draft, buyer credit, and RMB credit line loans. The company also offers credit cards; physical gold for personal investment and personal gold accounts; foreign exchange services; certificate treasury and savings bonds, securities deposit accounts, and securities services, as well as bank-securities transfer and book-entry treasury bond over the counter transaction services; and wealth management products. In addition, it provides collection, salaries payment, third-party collection and payment, insurance agency, and remittance services; international settlement and financing, and FI services; securities and fund settlement services; guarantee-based, consulting and advising, and factoring services; fund custody services; and e-banking services. Further, the company offers institutional services comprising services for government agencies, social security, banks cooperation, bank-securities cooperation, bank-insurance cooperation, and services for non-banking financial institutions. China Construction Bank Corporation was founded in 1954 and is headquartered in Beijing, the People's Republic of China.

About Deutsche Bank Aktiengesellschaft

(Get Free Report)

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.

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