Financial Analysis: Wells Fargo & (WFC) versus Its Peers
Wells Fargo & (NYSE: WFC) is one of 341 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Wells Fargo & to related businesses based on the strength of its dividends, profitability, earnings, risk, valuation, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
75.0% of Wells Fargo & shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Banks” companies are owned by institutional investors. 0.2% of Wells Fargo & shares are owned by company insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Wells Fargo & and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Wells Fargo &||$94.18 billion||$21.94 billion||14.22|
|Wells Fargo & Competitors||$5.42 billion||$809.98 million||351.14|
Wells Fargo & has higher revenue and earnings than its peers. Wells Fargo & is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of current recommendations for Wells Fargo & and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wells Fargo &||5||13||13||1||2.31|
|Wells Fargo & Competitors||2107||8301||8350||326||2.36|
Wells Fargo & currently has a consensus target price of $57.40, indicating a potential upside of 4.26%. As a group, “Banks” companies have a potential downside of 7.31%. Given Wells Fargo &’s higher possible upside, equities analysts plainly believe Wells Fargo & is more favorable than its peers.
Risk and Volatility
Wells Fargo & has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Wells Fargo &’s peers have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.
Wells Fargo & pays an annual dividend of $1.56 per share and has a dividend yield of 2.8%. Wells Fargo & pays out 40.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 34.5% of their earnings in the form of a dividend. Wells Fargo & has raised its dividend for 5 consecutive years.
This table compares Wells Fargo & and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wells Fargo &||22.00%||12.59%||1.16%|
|Wells Fargo & Competitors||18.78%||8.78%||0.93%|
Wells Fargo & beats its peers on 10 of the 15 factors compared.
Wells Fargo & Company Profile
Wells Fargo & Company is a bank holding company. The Company is a diversified financial services company. It has three operating segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The Company offers its services under three categories: personal, small business and commercial. It provides retail, commercial and corporate banking services through banking locations and offices, the Internet and other distribution channels to individuals, businesses and institutions in all 50 states, the District of Columbia and in other countries. It provides other financial services through its subsidiaries engaged in various businesses, including wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, computer and data processing services, investment advisory services, mortgage-backed securities servicing and venture capital investment.
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