COF vs. TFC, MFG, PNC, USB, HBAN, RF, SHG, C, WFC, and AON
Should you be buying Capital One Financial stock or one of its competitors? The main competitors of Capital One Financial include Truist Financial (TFC), Mizuho Financial Group (MFG), The PNC Financial Services Group (PNC), U.S. Bancorp (USB), Huntington Bancshares (HBAN), Regions Financial (RF), Shinhan Financial Group (SHG), Citigroup (C), Wells Fargo & Company (WFC), and AON (AON). These companies are all part of the "finance" sector.
Truist Financial (NYSE:TFC) and Capital One Financial (NYSE:COF) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends, analyst recommendations, community ranking and media sentiment.
Truist Financial presently has a consensus target price of $41.88, indicating a potential upside of 7.80%. Capital One Financial has a consensus target price of $138.50, indicating a potential downside of 2.75%. Given Capital One Financial's stronger consensus rating and higher possible upside, equities analysts clearly believe Truist Financial is more favorable than Capital One Financial.
71.3% of Truist Financial shares are held by institutional investors. Comparatively, 89.8% of Capital One Financial shares are held by institutional investors. 0.2% of Truist Financial shares are held by company insiders. Comparatively, 1.3% of Capital One Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Capital One Financial has a net margin of 10.19% compared to Capital One Financial's net margin of -4.28%. Truist Financial's return on equity of 9.74% beat Capital One Financial's return on equity.
In the previous week, Capital One Financial had 9 more articles in the media than Truist Financial. MarketBeat recorded 16 mentions for Capital One Financial and 7 mentions for Truist Financial. Truist Financial's average media sentiment score of 0.75 beat Capital One Financial's score of 0.38 indicating that Capital One Financial is being referred to more favorably in the news media.
Capital One Financial received 337 more outperform votes than Truist Financial when rated by MarketBeat users. Likewise, 66.08% of users gave Capital One Financial an outperform vote while only 55.71% of users gave Truist Financial an outperform vote.
Truist Financial has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.
Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 5.4%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.7%. Truist Financial pays out -157.6% of its earnings in the form of a dividend. Capital One Financial pays out 18.8% 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. Truist Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Capital One Financial has higher revenue and earnings than Truist Financial. Truist Financial is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Capital One Financial beats Truist Financial on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding COF 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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