Compass vs Bank of America Which Performs Better?

Compass and Bank of America are two prominent players in the financial sector, offering a range of services to their clients. While Compass specializes in real estate brokerage and technology, Bank of America is a multinational investment banking and financial services corporation. Both companies have a strong presence in the market, but their stock performance can vary based on various factors such as market trends, economic conditions, and company-specific developments. It is important for investors to carefully analyze and compare the performance of Compass and Bank of America stocks before making any investment decisions.

Compass or Bank of America?

When comparing Compass and Bank of America, 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 Compass and Bank of America.

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. Compass has a dividend yield of -%, while Bank of America has a dividend yield of 2.69%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%. On the other hand, Bank of America reports a 5-year dividend growth of 11.24% year and a payout ratio of 40.07%.

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 Compass P/E ratio at -17.41 and Bank of America's P/E ratio at 16.62. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Compass P/B ratio is 8.04 while Bank of America's P/B ratio is 1.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Compass has seen a 5-year revenue growth of 3.20%, while Bank of America's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and Bank of America's ROE at 8.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.59 for Compass and $45.58 for Bank of America. Over the past year, Compass's prices ranged from $1.88 to $7.01, with a yearly change of 272.87%. Bank of America's prices fluctuated between $27.42 and $46.52, with a yearly change of 69.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.