Nomura vs Bank of America Which Is More Profitable?

Nomura Holdings Inc. and Bank of America Corporation are two of the largest global financial institutions, competing in the competitive world of stock trading. Nomura, based in Japan, has a strong presence in the Asian market, while Bank of America, headquartered in the United States, is a major player in the global market. Investors often compare the performance of these two stocks, considering factors such as financial stability, market share, and potential for growth. Let's take a closer look at how Nomura and Bank of America stocks stack up against each other.

Nomura or Bank of America?

When comparing Nomura 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 Nomura 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. Nomura has a dividend yield of 1.33%, while Bank of America has a dividend yield of 2.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nomura reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.78%. 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 Nomura P/E ratio at 9.88 and Bank of America's P/E ratio at 15.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nomura P/B ratio is 0.82 while Bank of America's P/B ratio is 1.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nomura has seen a 5-year revenue growth of 0.03%, while Bank of America's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nomura's ROE at 8.20% 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 $5.97 for Nomura and $45.92 for Bank of America. Over the past year, Nomura's prices ranged from $4.29 to $6.62, with a yearly change of 54.31%. Bank of America's prices fluctuated between $31.27 and $48.08, with a yearly change of 53.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.