Bank of America vs Nomura Which Is More Favorable?

Bank of America and Nomura are two leading financial institutions with a significant presence in the global stock market. Bank of America, a US-based multinational investment bank and financial services company, offers a wide range of services to individual and institutional clients. Nomura, a Japanese financial services group, is known for its expertise in securities, investment banking, and asset management. Both companies have a strong reputation in the financial industry and are often compared for their performance in the stock market.

Bank of America or Nomura?

When comparing Bank of America and Nomura, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bank of America and Nomura.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bank of America has a dividend yield of 2.17%, while Nomura has a dividend yield of 1.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bank of America reports a 5-year dividend growth of 11.24% year and a payout ratio of 40.07%. On the other hand, Nomura reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.78%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bank of America P/E ratio at 15.26 and Nomura's P/E ratio at 9.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bank of America P/B ratio is 1.21 while Nomura's P/B ratio is 0.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bank of America has seen a 5-year revenue growth of 0.41%, while Nomura's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bank of America's ROE at 8.03% and Nomura's ROE at 8.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.92 for Bank of America and $5.97 for Nomura. Over the past year, Bank of America's prices ranged from $31.27 to $48.08, with a yearly change of 53.76%. Nomura's prices fluctuated between $4.29 and $6.62, with a yearly change of 54.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.