WFC vs. USB, CMA, BLX, JPM, BAC, C, UBS, PNC, TFC, and COF
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), Comerica (CMA), Banco Latinoamericano de Comercio Exterior, S. A. (BLX), JPMorgan Chase & Co. (JPM), Bank of America (BAC), Citigroup (C), UBS Group (UBS), The PNC Financial Services Group (PNC), Truist Financial (TFC), and Capital One Financial (COF). 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 investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership, community ranking, media sentiment and dividends.
U.S. Bancorp pays an annual dividend of $1.96 per share and has a dividend yield of 4.3%. Wells Fargo & Company pays an annual dividend of $1.60 per share and has a dividend yield of 2.6%. U.S. Bancorp pays out 64.9% of its earnings in the form of a dividend. Wells Fargo & Company pays out 32.9% 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. U.S. Bancorp has raised its dividend for 13 consecutive years. U.S. Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Wells Fargo & Company has a net margin of 15.17% compared to Wells Fargo & Company's net margin of 12.55%. Wells Fargo & Company's return on equity of 13.34% beat U.S. Bancorp's return on equity.
77.6% of U.S. Bancorp shares are held by institutional investors. Comparatively, 75.9% of Wells Fargo & Company shares are held by institutional investors. 0.2% of U.S. Bancorp shares are held by insiders. Comparatively, 0.1% of Wells Fargo & Company shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
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.
U.S. Bancorp has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Wells Fargo & Company has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
U.S. Bancorp presently has a consensus target price of $47.76, indicating a potential upside of 5.06%. Wells Fargo & Company has a consensus target price of $59.31, indicating a potential downside of 1.80%. Given Wells Fargo & Company's higher possible upside, analysts plainly believe U.S. Bancorp is more favorable than Wells Fargo & Company.
In the previous week, Wells Fargo & Company had 12 more articles in the media than U.S. Bancorp. MarketBeat recorded 30 mentions for Wells Fargo & Company and 18 mentions for U.S. Bancorp. Wells Fargo & Company's average media sentiment score of 0.87 beat U.S. Bancorp's score of 0.74 indicating that U.S. Bancorp is being referred to more favorably in the media.
Wells Fargo & Company received 732 more outperform votes than U.S. Bancorp when rated by MarketBeat users. Likewise, 63.04% of users gave Wells Fargo & Company an outperform vote while only 57.63% of users gave U.S. Bancorp an outperform vote.
Summary
Wells Fargo & Company beats U.S. Bancorp on 12 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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