Wells Fargo & vs Ameriprise Financial Which Outperforms?

Wells Fargo & Ameriprise Financial are two leading financial institutions with a strong presence in the market. Wells Fargo, a multinational banking and financial services company, provides a wide range of services including banking, investment, and wealth management. Ameriprise Financial, on the other hand, specializes in financial planning, investment management, and asset protection services. Both stocks have shown consistent growth and stability over the years, making them attractive options for investors looking to diversify their portfolios.

Wells Fargo & or Ameriprise Financial?

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

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. Wells Fargo & has a dividend yield of 2.12%, while Ameriprise Financial has a dividend yield of 1.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wells Fargo & reports a 5-year dividend growth of -4.54% year and a payout ratio of 34.33%. On the other hand, Ameriprise Financial reports a 5-year dividend growth of 8.47% year and a payout ratio of 20.91%.

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 Wells Fargo & P/E ratio at 13.25 and Ameriprise Financial's P/E ratio at 20.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wells Fargo & P/B ratio is 1.31 while Ameriprise Financial's P/B ratio is 9.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wells Fargo & has seen a 5-year revenue growth of 0.16%, while Ameriprise Financial's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wells Fargo &'s ROE at 9.96% and Ameriprise Financial's ROE at 53.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $70.79 for Wells Fargo & and $547.36 for Ameriprise Financial. Over the past year, Wells Fargo &'s prices ranged from $46.12 to $78.13, with a yearly change of 69.41%. Ameriprise Financial's prices fluctuated between $368.41 and $577.00, with a yearly change of 56.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.