DB vs Alcoa Which Is More Reliable?

DB and Alcoa are two incredibly different companies in the stock market. While DB, or Deutsche Bank, is a global financial services company based in Germany, Alcoa is a leading producer of aluminum and related products. Both companies have faced their fair share of challenges in recent years, with DB dealing with regulatory issues and Alcoa navigating through the ups and downs of the commodities market. Investors looking to diversify their portfolios may find opportunities in both DB and Alcoa stocks, but should carefully consider the risks associated with each.

DB or Alcoa?

When comparing DB and Alcoa, 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 DB and Alcoa.

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. DB has a dividend yield of -%, while Alcoa has a dividend yield of 1.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DB reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alcoa reports a 5-year dividend growth of 0.00% year and a payout ratio of -27.74%.

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 DB P/E ratio at 4.38 and Alcoa's P/E ratio at -31.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DB P/B ratio is 0.76 while Alcoa's P/B ratio is 1.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DB has seen a 5-year revenue growth of 0.91%, while Alcoa's is -0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DB's ROE at 19.09% and Alcoa's ROE at -6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩1428.00 for DB and $38.51 for Alcoa. Over the past year, DB's prices ranged from ₩1000.00 to ₩1942.00, with a yearly change of 94.20%. Alcoa's prices fluctuated between $24.86 and $47.77, with a yearly change of 92.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.