Deutsche Bank AG (NYSE: DB) and Cascade Bancorp (NASDAQ:CACB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Deutsche Bank AG and Cascade Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deutsche Bank AG -0.42% 3.65% 0.16%
Cascade Bancorp 20.91% 7.25% 0.87%

Dividends

Deutsche Bank AG pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Cascade Bancorp does not pay a dividend. Deutsche Bank AG pays out -33.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Deutsche Bank AG and Cascade Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Deutsche Bank AG $44.58 billion 0.78 -$1.55 billion ($0.62) -27.13
Cascade Bancorp N/A N/A N/A $0.30 N/A

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

Institutional and Insider Ownership

22.5% of Deutsche Bank AG shares are owned by institutional investors. Comparatively, 82.1% of Cascade Bancorp shares are owned by institutional investors. 10.1% of Cascade Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Deutsche Bank AG and Cascade Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deutsche Bank AG 3 5 2 0 1.90
Cascade Bancorp 0 0 0 0 N/A

Deutsche Bank AG currently has a consensus price target of $16.02, suggesting a potential downside of 4.79%.

Summary

Cascade Bancorp beats Deutsche Bank AG on 6 of the 10 factors compared between the two stocks.

Deutsche Bank AG Company Profile

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.

Cascade Bancorp Company Profile

Cascade Bancorp is a United States-based bank holding company. The Company operates through its subsidiary, Bank of the Cascades (the Bank). The Bank is an Oregon state chartered bank. The Bank offers a range of commercial and retail banking services to its customers. It provides commercial real estate loans, real estate construction and development loans, and commercial and industrial loans, as well as consumer installment, line-of-credit, credit card and home equity loans. It also originates residential mortgage loans. It provides consumer and business deposit services, including checking, money market, time deposit accounts and related payment services, Internet banking, electronic bill payment and remote deposits. It provides trust and investment related services. As of December 31, 2015, the Bank operated 37 branches serving communities in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho and Seattle, Washington areas.

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