Wells Fargo & vs Discover Financial Services Which Is More Reliable?

Wells Fargo & Company and Discover Financial Services are two prominent players in the financial services industry with well-established histories and proven track records. Wells Fargo, one of the largest banks in the United States, offers a wide range of financial services including banking, mortgage, and investment products. Discover Financial Services, on the other hand, is known for its credit card services and operates its own payment network. Investors looking to capitalize on the financial sector may find both stocks attractive options for their portfolios.

Wells Fargo & or Discover Financial Services?

When comparing Wells Fargo & and Discover Financial Services, 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 Discover Financial Services.

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 Discover Financial Services has a dividend yield of 1.59%. 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, Discover Financial Services reports a 5-year dividend growth of 12.47% year and a payout ratio of 24.19%.

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 Discover Financial Services's P/E ratio at 13.82. 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 Discover Financial Services's P/B ratio is 2.55.

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 Discover Financial Services's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wells Fargo &'s ROE at 9.96% and Discover Financial Services's ROE at 20.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $70.79 for Wells Fargo & and $175.55 for Discover Financial Services. Over the past year, Wells Fargo &'s prices ranged from $46.12 to $78.13, with a yearly change of 69.41%. Discover Financial Services's prices fluctuated between $96.46 and $188.26, with a yearly change of 95.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.