Reviewing M&T Bank (NYSE:MTB) and Deutsche Bank Aktiengesellschaft (NYSE:DB)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Deutsche Bank Aktiengesellschaft and M&T Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank Aktiengesellschaft	0	2	2	0	2.50
M&T Bank	1	6	9	0	2.50

M&T Bank has a consensus price target of $199.65, indicating a potential downside of 7.03%. Given M&T Bank’s higher possible upside, analysts plainly believe M&T Bank is more favorable than Deutsche Bank Aktiengesellschaft.

Institutional and Insider Ownership

27.9% of Deutsche Bank Aktiengesellschaft shares are owned by institutional investors. Comparatively, 84.7% of M&T Bank shares are owned by institutional investors. 0.8% of M&T Bank shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Deutsche Bank Aktiengesellschaft has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, M&T Bank has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Deutsche Bank Aktiengesellschaft and M&T Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank Aktiengesellschaft	$29.49 billion	1.19	$6.85 billion	$1.95	8.71
M&T Bank	$12.75 billion	2.79	$2.74 billion	$13.51	15.89

Deutsche Bank Aktiengesellschaft has higher revenue and earnings than M&T Bank. Deutsche Bank Aktiengesellschaft is trading at a lower price-to-earnings ratio than M&T Bank, 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 1.2%. M&T Bank pays an annual dividend of $5.40 per share and has a dividend yield of 2.5%. Deutsche Bank Aktiengesellschaft pays out 10.8% of its earnings in the form of a dividend. M&T Bank pays out 40.0% 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.

Profitability

This table compares Deutsche Bank Aktiengesellschaft and M&T Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank Aktiengesellschaft	6.40%	5.35%	0.31%
M&T Bank	17.82%	9.52%	1.15%

Summary

M&T Bank beats Deutsche Bank Aktiengesellschaft on 11 of the 15 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 M&T Bank

M&T Bank Corporation operates as a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association that engages in the provision of retail and commercial banking products and services in the United States. The company operates through three segments: Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. It offers a range of credit products and banking services, such as commercial lending and leasing, letters of credits, commercial real estate loans, and credit facilities secured by various commercial real estate to middle-market and large commercial customers. The company also provides customers deposit products, including demand, savings and time accounts, and other services; automobile and recreational finance loans, home equity loans and lines of credit, credit cards, and other loan products, as well as residential mortgage and real estate loans; business loans, cash management, payroll, and direct deposit services to consumers and small businesses through branch network, telephone banking, internet banking, and automated teller machines. In addition, it offers trustee, agency, investment management, security brokerage, and administrative services; personal trust, planning, fiduciary, asset management, family office, and other services; and investment products, including mutual funds and annuities, and other services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients. The company was founded in 1856 and is headquartered in Buffalo, New York.