UBS Group (NYSE:UBS – Get Free Report) and DBS Group (OTCMKTS:DBSDY – Get Free Report) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.
Institutional & Insider Ownership
36.4% of UBS Group shares are held by institutional investors. Comparatively, 0.2% of DBS Group shares are held by institutional investors. 1.0% of UBS Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares UBS Group and DBS Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
UBS Group pays an annual dividend of $0.17 per share and has a dividend yield of 0.6%. DBS Group pays an annual dividend of $5.49 per share and has a dividend yield of 5.6%. UBS Group pays out 1.8% of its earnings in the form of a dividend. UBS Group has increased its dividend for 3 consecutive years.
Earnings and Valuation
This table compares UBS Group and DBS Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|UBS Group||$36.51 billion||2.50||$7.63 billion||$9.57||2.74|
|DBS Group||$15.59 billion||4.02||$5.94 billion||N/A||N/A|
UBS Group has higher revenue and earnings than DBS Group.
This is a breakdown of current recommendations for UBS Group and DBS Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
UBS Group presently has a consensus target price of $18.86, suggesting a potential downside of 28.04%. Given UBS Group’s higher possible upside, analysts clearly believe UBS Group is more favorable than DBS Group.
UBS Group beats DBS Group on 11 of the 15 factors compared between the two stocks.
About UBS Group
UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. The Global Wealth Management division offers investment advice and solutions, and lending solutions. This segment also provides estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. The Personal & Corporate Banking division provides personal banking products and services, such as deposits, cards, and online and mobile banking, as well as lending, investments, and retirement services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, trade and export finance, and global custody solutions, as well as transaction banking solutions for payment and cash management. The Asset Management division offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. The Investment Bank division advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distribute, trade, finance, and clear cash equities and equity-linked products; and offers clients differentiated content on major financial markets and securities. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is based in Zurich, Switzerland.
About DBS Group
DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. The Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. The company was founded in 1968 and is headquartered in Singapore.
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