Critical Comparison: Mitsubishi UFJ Financial Group (NYSE:MUFG) versus Deutsche Bank Aktiengesellschaft (NYSE:DB)

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

Risk and Volatility

Deutsche Bank Aktiengesellschaft has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Valuation & Earnings

This table compares Deutsche Bank Aktiengesellschaft and Mitsubishi UFJ Financial Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$31.58 billion	2.50	$4.70 billion	$2.71	14.60
Mitsubishi UFJ Financial Group	$6,764.54 billion	0.03	$8.36 billion	$1.12	14.27

Mitsubishi UFJ Financial Group has higher revenue and earnings than Deutsche Bank Aktiengesellschaft. Mitsubishi UFJ Financial Group 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

Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 0.5%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.37 per share and has a dividend yield of 2.3%. Deutsche Bank Aktiengesellschaft pays out 7.8% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 33.0% 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.

Institutional and Insider Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are owned by institutional investors. Comparatively, 13.6% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. 0.0% of Mitsubishi UFJ Financial Group 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 recent recommendations and price targets for Deutsche Bank Aktiengesellschaft and Mitsubishi UFJ Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank Aktiengesellschaft	1	5	4	1	2.45
Mitsubishi UFJ Financial Group	0	2	0	0	2.00

Profitability

This table compares Deutsche Bank Aktiengesellschaft and Mitsubishi UFJ Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank Aktiengesellschaft	7.99%	5.97%	0.35%
Mitsubishi UFJ Financial Group	13.98%	9.39%	0.49%

Summary

Deutsche Bank Aktiengesellschaft beats Mitsubishi UFJ Financial Group on 10 of the 17 factors compared between the two stocks.

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.

About Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc. operates as the bank holding company, that engages in a range of financial businesses in Japan, the United States, Europe, Asia/Oceania, and internationally. It operates through seven segments: Digital Service, Retail & Commercial Banking, Japanese Corporate & Investment Banking, Global Commercial Banking, Asset Management & Investor Services, Global Corporate & Investment Banking, and Global Markets. The company offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. It also provides mergers and acquisition, debt and equity issuance, financial advice, and real estate-related services; digital-based financial services; credit cards; and trust banking and securities products and services, as well as engages in the lending, fund settlement, and foreign exchange businesses. In addition, the company offers corporate banking services, such as project export credit agency finance, and financing through asset-backed commercial paper; investment and transaction banking services for corporations, financial institutions, sovereign and multinational organizations, and institutional investors; and asset management and investor services, including pension fund management and administration, pension structure advisory, beneficiary payment, and investment trust services for retail customers. Further, it provides loans, deposits, fund transfers, hedging, and investments services for retail, small and medium-sized enterprise, as well as corporate customers; financing for automotive and consumer goods; sells and trades in fixed income instruments, currencies, equities, and equities; offers investment products comprising mutual funds, structured bonds, and notes; originates and distributes of financial products; and provides insurance and treasury services. The company was founded in 1880 and is headquartered in Tokyo, Japan.