Reviewing Commerzbank (OTCMKTS:CRZBY) & NewtekOne (NASDAQ:NEWT)

Commerzbank (OTCMKTS:CRZBY) and NewtekOne (NASDAQ:NEWT) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Insider & Institutional Ownership

38.4% of NewtekOne shares are owned by institutional investors. 5.9% of NewtekOne shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Commerzbank and NewtekOne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	5	3	1	2.56
NewtekOne	1	4	1	0	2.00

NewtekOne has a consensus price target of $16.33, indicating a potential upside of 47.81%. Given NewtekOne’s higher probable upside, analysts plainly believe NewtekOne is more favorable than Commerzbank.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$26.54 billion	1.69	$2.97 billion	$3.04	14.03
NewtekOne	$383.33 million	0.83	$60.51 million	$2.22	4.98

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

Dividends

Commerzbank pays an annual dividend of $0.90 per share and has a dividend yield of 2.1%. NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 6.9%. Commerzbank pays out 29.6% of its earnings in the form of a dividend. NewtekOne pays out 34.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NewtekOne has increased its dividend for 1 consecutive years. NewtekOne is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Commerzbank	13.30%	8.89%	0.53%
NewtekOne	15.57%	17.97%	2.26%

Risk & Volatility

Commerzbank has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

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 NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.