Deutsche Bank AG (NYSE: DB) and FB Financial Corporation (NYSE:FBK) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations for Deutsche Bank AG and FB Financial Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deutsche Bank AG 7 4 2 0 1.62
FB Financial Corporation 0 2 2 0 2.50

Deutsche Bank AG presently has a consensus price target of $14.02, suggesting a potential downside of 15.16%. FB Financial Corporation has a consensus price target of $34.50, suggesting a potential upside of 1.41%. Given FB Financial Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe FB Financial Corporation is more favorable than Deutsche Bank AG.

Earnings and Valuation

This table compares Deutsche Bank AG and FB Financial Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Deutsche Bank AG $32.56 billion 1.05 -$1.59 billion ($0.77) -21.45
FB Financial Corporation $256.47 million 3.84 $36.79 million $1.27 26.79

FB Financial Corporation has higher revenue, but lower earnings than Deutsche Bank AG. Deutsche Bank AG is trading at a lower price-to-earnings ratio than FB Financial Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Deutsche Bank AG and FB Financial Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deutsche Bank AG -1.51% 3.11% 0.13%
FB Financial Corporation 11.57% 11.57% 1.35%

Institutional and Insider Ownership

16.4% of Deutsche Bank AG shares are owned by institutional investors. Comparatively, 22.7% of FB Financial Corporation shares are owned by institutional investors. 6.1% of FB Financial Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Deutsche Bank AG pays an annual dividend of $0.21 per share and has a dividend yield of 1.3%. FB Financial Corporation does not pay a dividend. Deutsche Bank AG pays out -27.3% of its earnings in the form of a dividend.

Summary

FB Financial Corporation beats Deutsche Bank AG on 11 of the 14 factors compared between the two stocks.

About Deutsche Bank AG

Deutsche Bank AG is a bank and holding company for its subsidiaries. The Company offers a range of investment, financial and related products and services to private individuals, corporate entities and institutional clients. It operates through six divisions: Global Markets, which offers financial products, including trading and hedging services to institutions and corporate clients; Corporate & Investment Banking, which brings together its commercial banking, corporate finance and transaction banking capability; Private, Wealth and Commercial Clients, which combines its capability in private and commercial banking, as well as in wealth management solutions; Deutsche Asset Management, whose investment capabilities span both active and passive strategies and an array of asset classes, including equities, fixed income, real estate and sustainable investments; Postbank, which is a German financial service provider for retail, business and corporate clients, and Non-Core Operations Unit.

About FB Financial Corporation

FB Financial Corporation is the holding company for FirstBank (the Bank). The Company and the Bank are engaged in the business of banking and provide a full range of financial services. The Bank provides a suite of commercial and consumer banking services to clients in select markets in Tennessee, North Alabama and North Georgia. The Company operates approximately 40 full-service bank branches serving the Tennessee metropolitan markets of Nashville, Chattanooga, Knoxville, Memphis, Jackson and Huntsville (AL), in addition to over 10 community markets. The Company’s segments include Banking and Mortgage. The Banking segment provides a range of deposit and lending products and services to corporate, commercial and consumer customers. The Company offers full-service conforming residential mortgage products, including conforming residential loans and services through the Mortgage segment utilizing mortgage offices outside of the geographic footprint of the Banking operations.

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