Bank of N.T. Butterfield & Son (NYSE:NTB) versus Deutsche Bank Aktiengesellschaft (NYSE:DB) Head-To-Head Survey

Bank of N.T. Butterfield & Son (NYSE:NTB) and Deutsche Bank Aktiengesellschaft (NYSE:DB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Bank of N.T. Butterfield & Son has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Profitability

This table compares Bank of N.T. Butterfield & Son and Deutsche Bank Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of N.T. Butterfield & Son	30.22%	21.92%	1.72%
Deutsche Bank Aktiengesellschaft	10.43%	7.69%	0.44%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bank of N.T. Butterfield & Son and Deutsche Bank Aktiengesellschaft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of N.T. Butterfield & Son	0	3	1	1	2.60
Deutsche Bank Aktiengesellschaft	0	6	5	0	2.45

Bank of N.T. Butterfield & Son currently has a consensus price target of $55.00, indicating a potential upside of 0.78%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher probable upside, research analysts clearly believe Bank of N.T. Butterfield & Son is more favorable than Deutsche Bank Aktiengesellschaft.

Valuation & Earnings

This table compares Bank of N.T. Butterfield & Son and Deutsche Bank Aktiengesellschaft”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of N.T. Butterfield & Son	$800.02 million	2.86	$231.94 million	$5.78	9.44
Deutsche Bank Aktiengesellschaft	$32.22 billion	1.86	$7.47 billion	$3.63	8.52

Deutsche Bank Aktiengesellschaft has higher revenue and earnings than Bank of N.T. Butterfield & Son. Deutsche Bank Aktiengesellschaft is trading at a lower price-to-earnings ratio than Bank of N.T. Butterfield & Son, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

62.7% of Bank of N.T. Butterfield & Son shares are held by institutional investors. Comparatively, 27.9% of Deutsche Bank Aktiengesellschaft shares are held by institutional investors. 1.2% of Bank of N.T. Butterfield & Son shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Bank of N.T. Butterfield & Son pays an annual dividend of $2.00 per share and has a dividend yield of 3.7%. Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 0.7%. Bank of N.T. Butterfield & Son pays out 34.6% of its earnings in the form of a dividend. Deutsche Bank Aktiengesellschaft pays out 5.8% 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 raised its dividend for 4 consecutive years.

Summary

Bank of N.T. Butterfield & Son beats Deutsche Bank Aktiengesellschaft on 12 of the 18 factors compared between the two stocks.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Ltd. provides community banking and wealth management business. The firm operates through the following geographical segments: Bermuda, the Cayman Islands, Channel Islands and the UK, and Other. The Bermuda and Cayman segments offer retail banking and wealth management. The Channel Islands and the UK segment refers to the retail and corporate banking and wealth management. The Other segment includes operations in the jurisdictions of The Bahamas, Canada, Mauritius, Singapore and Switzerland. The company was founded in 1858 and is headquartered in Hamilton, Bermuda.

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.