Better Buy: Wells Fargo vs. Citigroup
These days, bank stocks are out of favor -- and that's putting it mildly.
With the market at near all-time highs, many growth companies, especially in the tech sector, are priced at extremely high valuations. Yet big U.S. banks are priced around 10 times earnings, an astonishing divergence from other stocks. In fact, the sector's extremely low valuations have lured the likes of Warren Buffett to scoop up bank stocks over the last few years.
Two of the country's biggest banks with the cheapest valuations are Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC). Not only have these stocks' valuations been hit by concerns over the flattening yield curve, but they're also priced at discounts even relative to their big bank brethren.
Quelle Fool.com
