U.S. Global Investors (NASDAQ:GROW – Get Free Report) and Deutsche Bank Aktiengesellschaft (NYSE:DB – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Institutional and Insider Ownership
23.6% of U.S. Global Investors shares are owned by institutional investors. Comparatively, 27.9% of Deutsche Bank Aktiengesellschaft shares are owned by institutional investors. 19.2% of U.S. Global Investors shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
U.S. Global Investors has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Profitability
This table compares U.S. Global Investors and Deutsche Bank Aktiengesellschaft’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| U.S. Global Investors | 29.81% | 6.70% | 6.30% |
| Deutsche Bank Aktiengesellschaft | 11.53% | 8.46% | 0.47% |
Dividends
U.S. Global Investors pays an annual dividend of $0.09 per share and has a dividend yield of 3.3%. Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.21 per share and has a dividend yield of 0.6%. U.S. Global Investors pays out 36.0% of its earnings in the form of a dividend. Deutsche Bank Aktiengesellschaft pays out 5.6% 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.
Earnings and Valuation
This table compares U.S. Global Investors and Deutsche Bank Aktiengesellschaft”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| U.S. Global Investors | $10.25 million | 3.26 | $3.06 million | $0.25 | 10.88 |
| Deutsche Bank Aktiengesellschaft | $32.87 billion | 1.92 | $7.47 billion | $3.75 | 8.68 |
Deutsche Bank Aktiengesellschaft has higher revenue and earnings than U.S. Global Investors. Deutsche Bank Aktiengesellschaft is trading at a lower price-to-earnings ratio than U.S. Global Investors, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for U.S. Global Investors and Deutsche Bank Aktiengesellschaft, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| U.S. Global Investors | 0 | 1 | 0 | 0 | 2.00 |
| Deutsche Bank Aktiengesellschaft | 1 | 5 | 10 | 0 | 2.56 |
Deutsche Bank Aktiengesellschaft has a consensus price target of $43.00, suggesting a potential upside of 32.10%. Given Deutsche Bank Aktiengesellschaft’s stronger consensus rating and higher possible upside, analysts clearly believe Deutsche Bank Aktiengesellschaft is more favorable than U.S. Global Investors.
Summary
Deutsche Bank Aktiengesellschaft beats U.S. Global Investors on 11 of the 17 factors compared between the two stocks.
About U.S. Global Investors
U.S. Global Investors, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm, an investment adviser to an investment company which provides portfolio management for investment companies. The firm manages and launches equity/balanced funds, fixed income funds and other funds. It also manages hedge funds. The firm primarily invests in no-load mutual funds and exchange traded funds (ETFs). U.S. Global Investors, Inc. is based in San Antonio, Texas.
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.
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