Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, German financial services giant Deutsche Bank (NYSE: DB ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Deutsche Bank's business and see what CAPS investors are saying about the stock right now.
Deutsche Bank facts
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Headquarters (Founded)
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Frankfurt am Main, Germany (1870)
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Market Cap
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$32.7 billion
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Industry
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Diversified capital markets
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Trailing-12-Month Revenue
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$39 billion
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Management
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Chairman/CEO Dr. Josef Ackermann
CFO Stefan Krause
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Return on Equity (Average, Past 3 Years)
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4.7%
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Dividend Yield
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2.8%
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Competitors
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Citigroup (NYSE: C )
JPMorgan Chase (NYSE: JPM )
UBS (NYSE: UBS )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 35.5% of the 625 members who have rated Deutsche Bank believe the stock will underperform the S&P 500 going forward. These bears include Jeffrey2012 and LipniakMajorat.
Earlier this month, Jeffrey2012 cautioned Fools about banking on the stock:
After riding the bounce, DB is going to go down for a while until this crisis is over. The only way this is going to be over is when this crisis causes a default and when they get recapitalized. Until then, it's going to get killed because of all the potential problems to arise.
Deutsche Bank even sports a P/E of 9.2. That represents a premium to competitors like Citigroup (7.6), JPMorgan (6.6), and UBS (6.7).
CAPS member LipniakMajorat elaborates on the bear case:
All major European banks are going to suffer greatly during the period when common currency is being redefined. Greece and Portugal will probably leave the Eurozone. Should this happen to Italy and Spain, which is less likely but not improbable, the whole common currency project will collapse. In addition, DB was managed its risk terribly in years prior to 2008 and has not cleaned up its act yet.
What do you think about Deutsche Bank, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Interested in another easy way to track Deutsche Bank? Add it to your watchlist.
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