Financial Comparison: Deutsche Bank Aktiengesellschaft (NYSE:DB) and TriCo Bancshares (NASDAQ:TCBK)

TriCo Bancshares (NASDAQ:TCBK) and Deutsche Bank Aktiengesellschaft (NYSE:DB) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Institutional & Insider Ownership

59.1% of TriCo Bancshares shares are owned by institutional investors. Comparatively, 27.9% of Deutsche Bank Aktiengesellschaft shares are owned by institutional investors. 4.6% of TriCo Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TriCo Bancshares and Deutsche Bank Aktiengesellschaft, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriCo Bancshares	0	3	2	0	2.40
Deutsche Bank Aktiengesellschaft	0	2	2	0	2.50

TriCo Bancshares currently has a consensus target price of $50.75, indicating a potential upside of 15.13%. Given TriCo Bancshares’ higher possible upside, research analysts plainly believe TriCo Bancshares is more favorable than Deutsche Bank Aktiengesellschaft.

Risk and Volatility

TriCo Bancshares has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Deutsche Bank Aktiengesellschaft has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares TriCo Bancshares and Deutsche Bank Aktiengesellschaft”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriCo Bancshares	$499.75 million	2.91	$117.39 million	$3.36	13.12
Deutsche Bank Aktiengesellschaft	$57.66 billion	0.68	$6.85 billion	$1.95	10.13

Deutsche Bank Aktiengesellschaft has higher revenue and earnings than TriCo Bancshares. Deutsche Bank Aktiengesellschaft is trading at a lower price-to-earnings ratio than TriCo Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TriCo Bancshares and Deutsche Bank Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TriCo Bancshares	21.12%	9.45%	1.14%
Deutsche Bank Aktiengesellschaft	6.40%	5.35%	0.31%

Dividends

TriCo Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.0%. Deutsche Bank Aktiengesellschaft pays an annual dividend of $0.49 per share and has a dividend yield of 2.5%. TriCo Bancshares pays out 39.3% of its earnings in the form of a dividend. Deutsche Bank Aktiengesellschaft pays out 25.1% 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. TriCo Bancshares has raised its dividend for 12 consecutive years. TriCo Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

TriCo Bancshares beats Deutsche Bank Aktiengesellschaft on 11 of the 16 factors compared between the two stocks.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.

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.