Critical Review: CaixaBank (OTCMKTS:CAIXY) versus Commerzbank (OTCMKTS:CRZBY)

Commerzbank (OTCMKTS:CRZBY) and CaixaBank (OTCMKTS:CAIXY) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Commerzbank has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, CaixaBank has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Valuation & Earnings

This table compares Commerzbank and CaixaBank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$22.00 billion	0.93	$2.41 billion	$1.92	8.98
CaixaBank	$24.18 billion	2.02	$5.21 billion	N/A	N/A

CaixaBank has higher revenue and earnings than Commerzbank.

Analyst Recommendations

This is a summary of current ratings and price targets for Commerzbank and CaixaBank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	1	0	0	2.00
CaixaBank	0	1	0	0	2.00

Profitability

This table compares Commerzbank and CaixaBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerzbank	9.65%	6.56%	0.41%
CaixaBank	N/A	N/A	N/A

Dividends

Commerzbank pays an annual dividend of $0.26 per share and has a dividend yield of 1.5%. CaixaBank pays an annual dividend of $0.06 per share and has a dividend yield of 2.7%. Commerzbank pays out 13.5% of its earnings in the form of a dividend.

Summary

CaixaBank beats Commerzbank on 5 of the 9 factors compared between the two stocks.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

About CaixaBank

CaixaBank, S.A., together with its subsidiaries, provides various banking products and financial services in Spain and internationally. The company operates through Banking and Insurance, Equity Investments, and BPI segments. It also provides solutions related to security, protection, internationalization, and financing; traditional financial advice, independent advice, and broker services; asset management; liquidity management; capital markets, cash management, project finance, asset finance, and M&A services; and various financial services and solutions to public and private sector institutions, as well as distributes non-life and life risk insurance policies; and private banking services. In addition, the company is involved in the real estate business. It has branches and ATMs in Spain; and branches and ATMs in Portugal. CaixaBank, S.A. was founded in 1904 and is based in Valencia, Spain.