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Bank of America Corporation (BAC) vs Wells Fargo & Company (WFC)

Bank of America Corporation and Wells Fargo & Company are both Banks Diversified companies. Bank of America Corporation is the larger, with a market value of $361.5B against $248.4B — 1.5× the size. Wells Fargo & Company trades at the lower P/E: 11.5× against 11.9×. Wells Fargo & Company grew revenue faster over the last twelve months: 6.24% against −0.92%. Wells Fargo & Company has the higher net margin (16.9% vs 15.9%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; Bank of America Corporation yields more (2.26% vs 2.21%). Across the 17 metrics below, Wells Fargo & Company leads on 10 and Bank of America Corporation on 7.

Valuation

Metric BAC WFC Banks Diversified median
P/E 11.88 11.53 11.97
P/S 1.87 1.94 2.60
P/B 1.33 1.57 1.59
Price to free cash flow 3.85 13.25 4.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.42% 8.67% 8.36%
Free cash flow yield 25.96% 7.55% 7.80%

Profitability

Metric BAC WFC Banks Diversified median
Gross margin 62.79% 66.99% 67.14%
Operating margin 0.00% 0.00% 0.00%
Net margin 15.88% 16.88% 18.44%
Free cash flow margin 0.00% 0.00% 0.00%
Return on equity 11.14% 13.43% 10.89%
Return on assets 0.90% 1.02% 0.76%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric BAC WFC Banks Diversified median
Revenue growth (TTM) (0.92%) 6.24% 5.49%
EPS growth (last fiscal year) 18.69% 16.57% 18.19%
Revenue growth, 5-year CAGR 15.36% 8.48% 14.34%
Net income growth, 5-year CAGR 12.02% 62.58% 10.77%

Health

Metric BAC WFC Banks Diversified median
Debt to equity 1.07 1.03 1.43
Current ratio 0.82 0.89 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BAC WFC Banks Diversified median
Dividend yield 2.26% 2.21% 2.29%
Payout ratio 0.27 0.26 0.27

Size

Metric BAC WFC Banks Diversified median
Market cap 361.53b 248.39b 201.23b

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