Deutsche Bank (DB) Is On The Mend And Very Cheap Compared To Peers

Deutsche Bank is priced very cheaply compared to its main competitors. It also is in a turnaround and had its first profit in many years; we think more profitable quarters lie ahead. The stock, we believe, presents a significant opportunity, particularly given its last earnings beat. Germany's largest lender posted a full-year net profit of 113 million Euros compared to an expected loss of 201 million euros. Similarly, the bank netted a 51 million euro profit in the fourth quarter compared to what analysts thought would be a 325 million loss. This is even more incredible given that the company is undergoing aggressive restructuring, which was the primary reason for its 5.7 billion loss in 2019. It did better in a pandemic year than a normal one! Higher revenues and cost-cutting more than offset a rise in loan-loss provisions due to the virus. The positive momentum makes the bank's Price/Book of .35 seem like a bargain.

Deutsche Bank (DB) Is On The Mend And Very Cheap Compared To Peers
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