WesBanco (NASDAQ:WSBC) vs. Bank of America (NYSE:BAC) Head to Head Comparison

Bank of America (NYSE:BAC) and WesBanco (NASDAQ:WSBC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Profitability

This table compares Bank of America and WesBanco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of America	13.28%	10.56%	0.87%
WesBanco	15.22%	5.90%	0.79%

Earnings & Valuation

This table compares Bank of America and WesBanco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of America	$98.32 billion	3.35	$26.52 billion	$2.89	14.58
WesBanco	$831.96 million	2.46	$159.03 million	$2.13	14.40

Bank of America has higher revenue and earnings than WesBanco. WesBanco is trading at a lower price-to-earnings ratio than Bank of America, indicating that it is currently the more affordable of the two stocks.

Dividends

Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.5%. WesBanco pays an annual dividend of $1.44 per share and has a dividend yield of 4.7%. Bank of America pays out 36.0% of its earnings in the form of a dividend. WesBanco pays out 67.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bank of America has increased its dividend for 11 consecutive years and WesBanco has increased its dividend for 13 consecutive years. WesBanco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Bank of America has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, WesBanco has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Bank of America and WesBanco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of America	1	8	12	1	2.59
WesBanco	0	4	3	0	2.43

Bank of America currently has a consensus target price of $42.27, suggesting a potential upside of 0.31%. WesBanco has a consensus target price of $34.71, suggesting a potential upside of 13.19%. Given WesBanco’s higher possible upside, analysts clearly believe WesBanco is more favorable than Bank of America.

Institutional and Insider Ownership

70.7% of Bank of America shares are owned by institutional investors. Comparatively, 61.4% of WesBanco shares are owned by institutional investors. 0.3% of Bank of America shares are owned by company insiders. Comparatively, 3.4% of WesBanco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Bank of America beats WesBanco on 13 of the 18 factors compared between the two stocks.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

About WesBanco

WesBanco, Inc. operates as the bank holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, mortgage banking, and insurance services to individuals and businesses in the United States. The company operates through two segments, Community Banking, and Trust and Investment Services. It offers commercial demand, individual demand, and time deposit accounts; commercial, mortgage and individual installment loans; retail loans, such as residential real estate mortgage loans, home equity lines of credit, and loans for other consumer purposes; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and various non-traditional offerings, such as insurance and securities brokerage services. The company also provides trust services; and various alternative investment products, including mutual funds and annuities. In addition, it acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.