WFC vs. USB, BAC, C, UBS, PNC, COF, JPM, AXP, HSBC, 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), UBS Group (UBS), The PNC Financial Services Group (PNC), Capital One Financial (COF), JPMorgan Chase & Co. (JPM), American Express (AXP), HSBC (HSBC), and Morgan Stanley (MS). These companies are all part of the "finance" sector.
U.S. Bancorp (NYSE:USB) and Wells Fargo & Company (NYSE:WFC) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, community ranking, media sentiment, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
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 Wells Fargo & Company's net margin of 12.13%. Wells Fargo & Company's return on equity of 13.93% beat U.S. Bancorp's return on equity.
U.S. Bancorp pays an annual dividend of $1.96 per share and has a dividend yield of 4.7%. Wells Fargo & Company pays an annual dividend of $1.40 per share and has a dividend yield of 2.3%. U.S. Bancorp pays out 64.9% of its earnings in the form of a dividend. Wells Fargo & Company pays out 29.2% 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. U.S. Bancorp has raised its dividend for 13 consecutive years and Wells Fargo & Company has raised its dividend for 3 consecutive years. U.S. Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
77.6% of U.S. Bancorp shares are owned by institutional investors. Comparatively, 75.9% of Wells Fargo & Company shares are owned by institutional investors. 0.2% of U.S. Bancorp shares are owned by insiders. Comparatively, 0.1% of Wells Fargo & Company shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
U.S. Bancorp presently has a consensus price target of $46.02, indicating a potential upside of 10.28%. Wells Fargo & Company has a consensus price target of $58.99, indicating a potential downside of 2.29%. Given Wells Fargo & Company's higher probable upside, analysts clearly believe U.S. Bancorp is more favorable than Wells Fargo & Company.
In the previous week, Wells Fargo & Company had 13 more articles in the media than U.S. Bancorp. MarketBeat recorded 33 mentions for Wells Fargo & Company and 20 mentions for U.S. Bancorp. U.S. Bancorp's average media sentiment score of 0.60 beat Wells Fargo & Company's score of 0.44 indicating that Wells Fargo & Company is being referred to more favorably in the news media.
U.S. Bancorp has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Wells Fargo & Company has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
Wells Fargo & Company received 715 more outperform votes than U.S. Bancorp when rated by MarketBeat users. Likewise, 63.23% of users gave Wells Fargo & Company an outperform vote while only 58.10% of users gave U.S. Bancorp an outperform vote.
Summary
Wells Fargo & Company beats U.S. Bancorp on 14 of the 22 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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