Financial Institutions

Investment Merit of Bank of America Corp. Versus Citigroup Inc.

In this video I will be comparing the investment merit of Bank of America Corp. (BAC) versus Citigroup Inc. (C). 

 

I will be comparing these two money center banks and evaluating them based on income, growth, and total return potential.  Of course, the primary factor to determine which I consider the better investment will be based on valuation.  A better valuation can be a real equalizer.  When valuation is attractive it provides the investor a better margin of safety, greater current income, and the opportunity for a better total return and a much lower level of risk.

A second benefit of this video will be the clear perspective of the importance of business results relative to shareholder returns.  If you are a long-term investor, as I believe most people should be, then business results will be the primary determinant of how well the investment performs on your behalf.  Nevertheless, this principle mainly applies when valuation is either sound – or better yet – attractive.  In the long run, earnings determine market price.  Consequently, when you see a FAST Graph with earnings and price correlated, the evidence becomes clear and indisputable.

FAST Graphs Analyze Out Loud Video Citi and Bank of America

FAST Graphs Analyze Out Loud Video

Originally Posted by FAST Graphs

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

 

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