Bank of America vs Deutsche Bank Which Is More Lucrative?

Bank of America (BAC) and Deutsche Bank (DB) are two major players in the global financial market. BAC, based in the United States, is a leading bank with a strong presence in the domestic market. DB, based in Germany, is a major European bank with a significant presence worldwide. Both banks have faced challenges in recent years, including regulatory scrutiny and market volatility. Investors interested in banking stocks may consider comparing the performance and potential risks of BAC and DB to make informed investment decisions.

Bank of America or Deutsche Bank?

When comparing Bank of America and Deutsche Bank, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bank of America and Deutsche Bank.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bank of America has a dividend yield of 2.65%, while Deutsche Bank has a dividend yield of 3.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bank of America reports a 5-year dividend growth of 11.24% year and a payout ratio of 40.07%. On the other hand, Deutsche Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bank of America P/E ratio at 15.48 and Deutsche Bank's P/E ratio at 8.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bank of America P/B ratio is 1.23 while Deutsche Bank's P/B ratio is 0.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bank of America has seen a 5-year revenue growth of 0.37%, while Deutsche Bank's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bank of America's ROE at 8.03% and Deutsche Bank's ROE at 6.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.62 for Bank of America and $16.87 for Deutsche Bank. Over the past year, Bank of America's prices ranged from $29.32 to $46.84, with a yearly change of 59.75%. Deutsche Bank's prices fluctuated between $12.05 and $17.95, with a yearly change of 48.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.