Bank of America Corporation (BAC) vs Citigroup Inc. (C)

Bank of America Corporation and Citigroup Inc. are both Banks Diversified companies. Bank of America Corporation is the larger, with a market value of $392.9B against $222.2B — 1.8× the size. Bank of America Corporation trades at the lower P/E: 12.9× against 14.4×. Citigroup Inc. grew revenue faster over the last twelve months: 4.01% against −1.02%. Bank of America Corporation has the higher net margin (16.6% vs 9.44%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; Citigroup Inc. yields more (3.96% vs 3.01%). Across the 18 metrics below, Bank of America Corporation leads on 12 and Citigroup Inc. on 6.

Valuation

Metric BAC C Banks Diversified median
P/E 12.86 14.42 13.67
P/S 2.10 1.31 2.72
P/B 1.47 1.17 1.69
Price to free cash flow 4.32 n/m 4.53
EV/EBITDA n/m n/m —
EV/Sales (1.37) (4.84) —
Earnings yield 7.78% 6.93% 7.33%
Free cash flow yield 23.13% (10.69%) 7.63%

Profitability

Metric BAC C Banks Diversified median
Gross margin 61.68% 52.38% 67.18%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.62% 9.44% 18.44%
Free cash flow margin 49.01% (14.00%) 1.96%
Return on equity 11.64% 8.38% 11.14%
Return on assets 0.93% 0.60% 0.74%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric BAC C Banks Diversified median
Revenue growth (TTM) (1.02%) 4.01% 4.67%
EPS growth (last fiscal year) 18.69% 17.68% —
Revenue growth, 5-year CAGR 15.36% 13.63% 14.34%
Net income growth, 5-year CAGR 12.02% 5.68% 10.77%

Health

Metric BAC C Banks Diversified median
Debt to equity 1.13 1.56 1.39
Current ratio 0.83 1.05 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BAC C Banks Diversified median
Dividend yield 3.01% 3.96% 3.80%
Payout ratio 0.25 0.32 0.31

Size

Metric BAC C Banks Diversified median
Market cap 392.85b 222.18b 186.46b

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