Better Buy: Bank of America vs. Citigroup
Since the coronavirus pandemic struck the economy, both Bank of America (NYSE: BAC) and Citigroup (NYSE: C), two of the largest banks in the world, have been hit hard. Bank of America's share price is down roughly 28% from the beginning of the year, while Citigroup's is down roughly 33%. Meanwhile, the S&P 500 index is only down a few percentage points, suggesting the overall market is still erring on the side of caution when it comes to bank stocks.
For this reason, I am looking for those bank stocks with the least amount of risk, which is why I like Bank of America better than Citigroup. Not only does Bank of America have what I consider to be a safer loan and overall portfolio, but I also believe that the bank's dividend is much safer than Citigroup's, which could face some danger of being cut or suspended later this year.
Image source: Getty Images.
Source Fool.com
