Citigroup vs Deutsche Bank Which Outperforms?

Citigroup and Deutsche Bank are two large financial institutions that are heavily traded on the stock market. Both companies have faced challenges in recent years, with Citigroup struggling to recover from the 2008 financial crisis and Deutsche Bank facing regulatory scrutiny and legal issues. Investors often compare the two stocks to determine which may be a better investment opportunity. Factors such as financial performance, market trends, and industry outlooks can influence the stock prices of both companies.

Citigroup or Deutsche Bank?

When comparing Citigroup 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 Citigroup 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. Citigroup has a dividend yield of 3.93%, while Deutsche Bank has a dividend yield of 3.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Citigroup reports a 5-year dividend growth of 6.20% year and a payout ratio of 67.51%. 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 Citigroup P/E ratio at 17.43 and Deutsche Bank's P/E ratio at 8.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Citigroup P/B ratio is 0.63 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, Citigroup has seen a 5-year revenue growth of 0.39%, while Deutsche Bank's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Citigroup's ROE at 3.67% 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 $69.20 for Citigroup and $16.97 for Deutsche Bank. Over the past year, Citigroup's prices ranged from $41.93 to $70.20, with a yearly change of 67.42%. Deutsche Bank's prices fluctuated between $11.24 and $17.95, with a yearly change of 59.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.