Truist Financial vs Wells Fargo & Which Is More Favorable?

Truist Financial and Wells Fargo are two major players in the financial services industry, both offering a range of products and services including banking, investments, and insurance. While Truist Financial is a relatively new entity formed through a merger between SunTrust and BB&T, Wells Fargo is one of the oldest and largest banks in the United States. Investors are constantly comparing the performance of these two companies' stocks to determine which may be a better investment opportunity.

Truist Financial or Wells Fargo &?

When comparing Truist Financial and Wells Fargo &, 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 Truist Financial and Wells Fargo &.

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. Truist Financial has a dividend yield of 4.54%, while Wells Fargo & has a dividend yield of 2.13%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Truist Financial reports a 5-year dividend growth of 5.92% year and a payout ratio of -203.10%. On the other hand, Wells Fargo & reports a 5-year dividend growth of -4.54% year and a payout ratio of 34.33%.

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 Truist Financial P/E ratio at -39.46 and Wells Fargo &'s P/E ratio at 13.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Truist Financial P/B ratio is 0.93 while Wells Fargo &'s P/B ratio is 1.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Truist Financial has seen a 5-year revenue growth of 0.23%, while Wells Fargo &'s is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Truist Financial's ROE at -2.50% and Wells Fargo &'s ROE at 9.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.43 for Truist Financial and $70.02 for Wells Fargo &. Over the past year, Truist Financial's prices ranged from $34.23 to $49.06, with a yearly change of 43.32%. Wells Fargo &'s prices fluctuated between $46.12 and $78.13, with a yearly change of 69.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.