December 6th, 2021 | 13:06 CET
flatexDEGIRO, wallstreet:online, Deutsche Bank: Turbulent markets? Gains beckon here!
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At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
flatexDEGIRO: Off to Europe!
The share of the broker flatexDEGIRO has caused a sensation in recent months and has made considerable gains. Recently, the price came back a little. The broker increased its revenue by 126.6% to EUR 226.1 million in the first half of the year. Adjusted earnings per share went up to EUR 2.40. flatexDEGIRO offers trading products and savings plans and thus addresses different customer groups - in addition to traders, traditional investors are also addressed. Early on, flatexDEGIRO charged fees for the securities account and high cash balances. Since many other providers are now following suit, flatexDEGIRO no longer has this malus exclusively.
The share lost around 5% on a three-month horizon and currently shows little momentum. Although the Company plans to expand its growth to Europe, it remains to be seen to what extent the move into new markets will succeed. As a rule, such expansion plans are associated with costs. The market rewards related growth stories only if these do not get out of hand or lead directly to positive results.
wallstreet:online: Fresh capital for a good cause
Comparable to flatexDEGIRO is the share of wallstreet:online. The Company offers numerous popular websites around the stock exchange and finance. At the same time, the Berliners started with Smartbroker in the brokerage business and showed high growth rates there. In the first half of 2021, sales increased by 57%. EBITDA doubled compared to the same period last year. Since both the brokerage and the media business contributed to growth, there are no acute concerns at wallstreet:online. On the contrary, the media division and brokerage complement each other. In the future, the Company also wants to offer the option of trading in the context of articles. In the long term, this could lead to increased trading revenues.
But the Berliners leave nothing to chance when it comes to growth: Most recently, the Company announced a capital increase of around EUR 8 million through its subsidiary wallstreet:online Capital AG. The funds are to be used to expand the Company's licenses as a securities institution and make the business model even more efficient. wallstreet:online Capital AG holds 95% of Smartbroker. The remaining shareholders are to be compensated soon. With the increased value generated through additional licenses, Smartbroker could grow even faster in the future. For the share, this could be good news. Compared to the highs of the year, the value has already come back a little.
However, high trading volumes in the wake of volatile markets could help the stock get back on track. Most excitingly, Wallstreet:Online aims to increase client assets under management to over EUR 10 billion in the first quarter of 2022 and is currently valued at around EUR 340 million. Competitor Trade Republic has over EUR 6 billion under management and most recently showed a price tag of EUR 4.3 billion.
Deutsche Bank: Little hope
When it comes to the stock market and finance, investors always think of the former German flagship: Deutsche Bank. But the once-proud bank is now only a shadow of its former self. One restructuring program follows the next, and even the long-awaited turnaround in interest rates is not materializing for the time being, at least in Europe. The recent Corona crash has not been kind to the share, and the upward trend over the year is becoming increasingly flat - the return is now only around 14%. In addition, no business area has emerged as promising in the long term - the successes in investment banking do not appear to be easily extrapolated into the future given the crumbling markets.
While Deutsche Bank is only a shadow of its former self, the situation is already different for the young, up-and-coming German brokers. While flatexDEGIRO wants to expand across Europe, which is associated with risks, wallstreet:online is starting in the right place with its Smartbroker and new licenses.
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