Citigroup Inc. (C) vs Wells Fargo & Company (WFC)

Citigroup Inc. and Wells Fargo & Company are both Banks Diversified companies. Wells Fargo & Company is the larger, with a market value of $248.6B against $222.2B — 1.1× the size. Wells Fargo & Company trades at the lower P/E: 11.9× against 14.4×. Wells Fargo & Company grew revenue faster over the last twelve months: 5.33% against 4.01%. Wells Fargo & Company has the higher net margin (16.8% 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 3.05%). Across the 18 metrics below, Wells Fargo & Company leads on 11 and Citigroup Inc. on 7.

Valuation

Metric C WFC Banks Diversified median
P/E 14.42 11.92 13.67
P/S 1.31 1.96 2.72
P/B 1.17 1.51 1.69
Price to free cash flow n/m 13.27 4.53
EV/EBITDA n/m n/m —
EV/Sales (4.84) (1.69) —
Earnings yield 6.93% 8.39% 7.33%
Free cash flow yield (10.69%) 7.53% 7.63%

Profitability

Metric C WFC Banks Diversified median
Gross margin 52.38% 67.36% 67.18%
Operating margin 0.00% 0.00% 0.00%
Net margin 9.44% 16.78% 18.44%
Free cash flow margin (14.00%) 14.88% 1.96%
Return on equity 8.38% 12.97% 11.14%
Return on assets 0.60% 1.01% 0.74%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric C WFC Banks Diversified median
Revenue growth (TTM) 4.01% 5.33% 4.67%
EPS growth (last fiscal year) 17.68% 16.57% —
Revenue growth, 5-year CAGR 13.63% 8.48% 14.34%
Net income growth, 5-year CAGR 5.68% 62.58% 10.77%

Health

Metric C WFC Banks Diversified median
Debt to equity 1.56 1.00 1.39
Current ratio 1.05 0.90 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric C WFC Banks Diversified median
Dividend yield 3.96% 3.05% 3.80%
Payout ratio 0.32 0.30 0.31

Size

Metric C WFC Banks Diversified median
Market cap 222.18b 248.57b 186.46b

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