WFC vs. USB, BAC, C, PNC, COF, TFC, JPM, HSBC, AXP, and MS
Should you be buying Wells Fargo & Company stock or one of its competitors? The main competitors of Wells Fargo & Company include U.S. Bancorp (USB), Bank of America (BAC), Citigroup (C), The PNC Financial Services Group (PNC), Capital One Financial (COF), Truist Financial (TFC), JPMorgan Chase & Co. (JPM), HSBC (HSBC), American Express (AXP), and Morgan Stanley (MS). These companies are all part of the "finance" sector.
Wells Fargo & Company (NYSE:WFC) and U.S. Bancorp (NYSE:USB) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, community ranking, analyst recommendations, profitability, media sentiment, valuation, institutional ownership, earnings and dividends.
75.9% of Wells Fargo & Company shares are held by institutional investors. Comparatively, 77.6% of U.S. Bancorp shares are held by institutional investors. 0.1% of Wells Fargo & Company shares are held by company insiders. Comparatively, 0.2% of U.S. Bancorp 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.
Wells Fargo & Company has higher revenue and earnings than U.S. Bancorp. Wells Fargo & Company is trading at a lower price-to-earnings ratio than U.S. Bancorp, indicating that it is currently the more affordable of the two stocks.
Wells Fargo & Company has a net margin of 15.63% compared to U.S. Bancorp's net margin of 12.13%. U.S. Bancorp's return on equity of 13.93% beat Wells Fargo & Company's return on equity.
Wells Fargo & Company has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, U.S. Bancorp has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Wells Fargo & Company pays an annual dividend of $1.40 per share and has a dividend yield of 2.3%. U.S. Bancorp pays an annual dividend of $1.96 per share and has a dividend yield of 4.7%. Wells Fargo & Company pays out 29.2% of its earnings in the form of a dividend. U.S. Bancorp pays out 64.9% 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.
Wells Fargo & Company received 723 more outperform votes than U.S. Bancorp when rated by MarketBeat users. Likewise, 63.21% of users gave Wells Fargo & Company an outperform vote while only 58.09% of users gave U.S. Bancorp an outperform vote.
In the previous week, Wells Fargo & Company had 9 more articles in the media than U.S. Bancorp. MarketBeat recorded 24 mentions for Wells Fargo & Company and 15 mentions for U.S. Bancorp. Wells Fargo & Company's average media sentiment score of 0.98 beat U.S. Bancorp's score of 0.73 indicating that Wells Fargo & Company is being referred to more favorably in the media.
Wells Fargo & Company currently has a consensus target price of $58.99, indicating a potential downside of 3.42%. U.S. Bancorp has a consensus target price of $46.02, indicating a potential upside of 11.08%. Given U.S. Bancorp's higher possible upside, analysts clearly believe U.S. Bancorp is more favorable than Wells Fargo & Company.
Summary
Wells Fargo & Company beats U.S. Bancorp on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WFC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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