Critical Review: Hamilton Lane (NASDAQ:HLNE) & Deutsche Bank (NYSE:DB)

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

Institutional & Insider Ownership

27.9% of Deutsche Bank shares are held by institutional investors. Comparatively, 97.4% of Hamilton Lane shares are held by institutional investors. 24.0% of Hamilton Lane shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Deutsche Bank has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Hamilton Lane has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Bank	11.59%	8.63%	0.48%
Hamilton Lane	32.40%	23.47%	15.43%

Earnings & Valuation

This table compares Deutsche Bank and Hamilton Lane”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Bank	$68.84 billion	1.04	$7.47 billion	$3.86	9.52
Hamilton Lane	$758.99 million	6.89	$249.18 million	$6.74	13.97

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Deutsche Bank and Hamilton Lane, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Bank	1	4	10	1	2.69
Hamilton Lane	0	3	7	0	2.70

Deutsche Bank currently has a consensus price target of $43.00, suggesting a potential upside of 16.98%. Hamilton Lane has a consensus price target of $126.12, suggesting a potential upside of 33.91%. Given Hamilton Lane’s stronger consensus rating and higher probable upside, analysts plainly believe Hamilton Lane is more favorable than Deutsche Bank.

Summary

Hamilton Lane beats Deutsche Bank on 11 of the 15 factors compared between the two stocks.

About Deutsche Bank

Deutsche Bank is a global financial services company headquartered in Frankfurt, Germany. Founded in Berlin in 1870 to support German and international trade, it has grown into one of Germany’s largest banking groups. The bank serves businesses, governments, institutional investors and individuals in Germany and other markets around the world. Its Corporate Bank provides services such as cash management, payments, trade finance and lending, while its Investment Bank offers capital-markets, advisory, financing and trading services.

About Hamilton Lane

Hamilton Lane Incorporated is a global investment management firm focused on private markets. The company serves institutional investors and private wealth clients, offering discretionary investment management and advisory services to help clients build and manage private markets portfolios. Its strategies include investments in private equity, private credit, infrastructure and other private market assets. Hamilton Lane provides access through commingled funds, customized separate accounts, secondary investments and direct or co-investments.