Unity Bancorp (NASDAQ:UNTY) and Deutsche Bank (NYSE:DB) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Volatility & Risk

Unity Bancorp has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Deutsche Bank has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Profitability

This table compares Unity Bancorp and Deutsche Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unity Bancorp 28.09% 16.20% 1.44%
Deutsche Bank -8.73% -4.63% -0.22%

Analyst Recommendations

This is a summary of recent ratings and price targets for Unity Bancorp and Deutsche Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unity Bancorp 0 0 1 0 3.00
Deutsche Bank 8 9 0 0 1.53

Unity Bancorp presently has a consensus price target of $24.00, suggesting a potential upside of 21.03%. Deutsche Bank has a consensus price target of $6.89, suggesting a potential downside of 1.36%. Given Unity Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Unity Bancorp is more favorable than Deutsche Bank.

Dividends

Unity Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. Deutsche Bank does not pay a dividend. Unity Bancorp pays out 15.9% of its earnings in the form of a dividend. Unity Bancorp has increased its dividend for 5 consecutive years.

Valuation and Earnings

This table compares Unity Bancorp and Deutsche Bank’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Unity Bancorp $76.29 million 2.82 $21.92 million $2.01 9.87
Deutsche Bank $43.60 billion 0.33 $314.15 million ($0.01) -698.00

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

Insider & Institutional Ownership

49.1% of Unity Bancorp shares are held by institutional investors. Comparatively, 20.5% of Deutsche Bank shares are held by institutional investors. 29.7% of Unity Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Unity Bancorp beats Deutsche Bank on 13 of the 17 factors compared between the two stocks.

Unity Bancorp Company Profile

Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides a range of banking products and services to individuals, small and medium sized businesses, and professional communities. The company offers personal and business checking accounts, time deposits, money market accounts, and regular savings accounts. It also provides commercial, small business administration, consumer, mortgage, home equity, and personal loans. As of December 31, 2018, the company offered its financial services through 19 branch offices located in Bergen, Hunterdon, Middlesex, Somerset, Union, and Warren Counties in New Jersey, as well as Northampton County, Pennsylvania. Unity Bancorp, Inc. was founded in 1991 and is headquartered in Clinton, New Jersey.

Deutsche Bank Company Profile

Deutsche Bank Aktiengesellschaft provides investment, financial, and related products and services to private individuals, corporate entities, and institutional clients worldwide. It operates through three segments: Corporate & Investment Bank (CIB), Private & Commercial Bank (PCB), and Deutsche Asset Management. The company's CIB segment offers financial market products, such as bonds, equities and equity-linked products, exchange-traded and over-the-counter derivatives, foreign exchange, money market instruments, and structured products. This segment also offers commercial banking, mergers and acquisitions, debt and equity advisory and origination, and cash management services; and trade finance and securities services. Its PCB segment offers payment and current account services, investment and insurance products, deposits, and credit and financing products; mid-cap related products; customized wealth management and investment solutions consisting of discretionary portfolio management, investment advices, and currency and deposit services; start-up and structured financing; interest rate and currency management services; and postal and non-banking services. This segment also offers financing solutions, such as real estate, single-stock, and aircraft financing; and mergers and acquisitions, pre-IPO, private placements, private and public investment solutions, structured lending, and trading and hedging products. In addition, the PCB segment provides wealth structuring, wealth transfer, and philanthropy services. Its Deutsche Asset Management segment invests in equities, fixed income, liquidity, real estate, infrastructure, private equity, and sustainable investments; and delivers alpha and beta solutions. As of December 31, 2017, the company operated 2,425 branches in 60 countries. Deutsche Bank Aktiengesellschaft was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

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