Wells Fargo & Company (NYSE:WFC) and Community Bancorp (OTCMKTS:CMTV) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
Volatility and Risk
Wells Fargo & Company has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Community Bancorp has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
This table compares Wells Fargo & Company and Community Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wells Fargo & Company||3.72%||3.18%||0.26%|
This is a summary of current ratings for Wells Fargo & Company and Community Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wells Fargo & Company||0||11||15||0||2.58|
Wells Fargo & Company currently has a consensus price target of $33.79, indicating a potential downside of 10.67%. Given Wells Fargo & Company’s higher probable upside, equities research analysts clearly believe Wells Fargo & Company is more favorable than Community Bancorp.
Earnings and Valuation
This table compares Wells Fargo & Company and Community Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wells Fargo & Company||$103.92 billion||1.51||$19.55 billion||$4.38||8.64|
|Community Bancorp||$37.71 million||2.29||$8.82 million||N/A||N/A|
Wells Fargo & Company has higher revenue and earnings than Community Bancorp.
Institutional and Insider Ownership
67.3% of Wells Fargo & Company shares are held by institutional investors. 0.1% of Wells Fargo & Company shares are held by insiders. Comparatively, 7.8% of Community Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Wells Fargo & Company pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Community Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 4.7%. Wells Fargo & Company pays out 9.1% of its earnings in the form of a dividend. Wells Fargo & Company has increased its dividend for 1 consecutive years.
Wells Fargo & Company beats Community Bancorp on 8 of the 15 factors compared between the two stocks.
About Wells Fargo & Company
Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally. It operates in three segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The Community Banking segment offers checking and savings accounts; credit and debit cards; and automobile, student, mortgage, home equity, and small business lending products. The Wholesale Banking segment provides commercial, corporate, capital markets, cash management, and real estate banking products and services, including traditional commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange services, treasury management, institutional fixed-income sales, interest rate, commodity and equity risk management, online/electronic products, corporate trust fiduciary and agency services, and investment banking services. It also offers commercial and residential development, land acquisition and development, rehabilitation, permanent securitization, and commercial real estate loans; secured and unsecured lines of credit; affordable housing loans and letters of credit; and interim financing arrangements. The Wealth and Investment Management segment provides personalized wealth management, investment, and retirement products and services; and delivers financial planning, private banking, credit, investment management, and fiduciary services. The company also offers brokerage, and Internet and mobile banking services; and has collaboration with National LGBT Chamber of Commerce. As of March 16, 2020, it operated through 7,400 locations; approximately 13,000 ATMs; and offices in 32 countries and territories. The Company was founded in 1852 and is headquartered in San Francisco, California.
About Community Bancorp
Community Bancorp. operates as the bank holding company for Community National Bank that provides a range of retail banking services to residents, businesses, nonprofit organizations, and municipalities. It provides various consumer banking products and services, including checking accounts, savings programs, ATMs, debit/credit cards, and night deposit facilities, as well as online, mobile, and telephone banking. The company's business banking products and services comprise credit products for various business purposes, including financing for commercial business properties, equipment, inventories, and accounts receivable, as well as letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, and remote deposit capture. It offers commercial real estate lending products for commercial developers and investors, residential builders and developers, and community development entities, which include credit products to facilitate the purchase of land and/or build structures for business, for investors to develop residential or commercial properties, and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. The company's residential real estate lending products include fixed-rate and adjustable rate residential mortgage and home equity loans; retail credit products include personal, automobile, and boat/recreational vehicle loans; and municipal and institutional banking products and services for state and local governments, schools, charities, membership, and not-for-profit associations comprise deposit accounts, tax-exempt loans, lines of credit, and term loans, as well as a collateralized secured deposit products. It operates through a main office in Derby; and eleven branch offices in northeastern and central Vermont. Community Bancorp. was founded in 1851 and is based in Derby, Vermont.
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