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

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

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$68.84 billion	0.99	$7.47 billion	$3.63	9.69
Itau Unibanco	$30.04 billion	2.93	$8.03 billion	$0.73	10.89

Itau Unibanco has lower revenue, but higher earnings 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 & Insider Ownership

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

Volatility and Risk

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

Analyst Ratings

This is a summary of current recommendations and price targets for Deutsche Bank Aktiengesellschaft and Itau Unibanco, as provided by MarketBeat.com.

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

Itau Unibanco has a consensus target price of $9.00, indicating a potential upside of 13.21%. Given Itau Unibanco’s stronger consensus rating and higher probable upside, analysts clearly believe Itau Unibanco is more favorable than Deutsche Bank Aktiengesellschaft.

Summary

Itau Unibanco beats Deutsche Bank Aktiengesellschaft on 9 of the 14 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 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.