Better Buy: Bank of America vs. Citigroup
Bank stocks are typically a popular choice for long-term investors. Not only are they generally good bets to perform over the long term, but most also provide investors with solid dividend income for many years. However, with interest rates falling, margins shrinking and economic issues weighing on investors, it's important to choose the right bank stock for your portfolio today, and below, I'll compare two of the biggest banks around: Bank of America (NYSE: BAC) and Citigroup (NYSE: C).
Bank of America has been having a very strong year in 2019 as its stock has appreciated more than 30% year to date. The company is coming off an impressive third quarter in which it beat expectations. Revenue was effectively flat from the prior year, but Bank of America's bottom line would have been up by 14% had it not been for a one-time charge related to the end of its agreement with First Data. The companies have been providing merchant services to businesses and first entered into the agreement back in 2009. However, once it expires in June 2020, they will "pursue independent merchant services strategies."
The company's focus has been on trying to add value for its customers while also keeping its costs down. In the third-quarter earnings release, CEO Brian Moynihan stated, "In a moderately growing economy, we focused on driving those things that are controllable. We made continued strong investments in our capabilities to serve customers, more relationship management teammates, more and refurbished branches and offices, and more digital capabilities, all while core expenses are flat."
Source Fool.com
