Bank of America (NYSE: BAC) is one of 310 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare Bank of America to related businesses based on the strength of its risk, dividends, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Bank of America and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Bank of America $93.66 billion $17.91 billion 16.75
Bank of America Competitors $5.50 billion $827.87 million 385.29

Bank of America has higher revenue and earnings than its competitors. Bank of America is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Bank of America 20.66% 8.33% 0.91%
Bank of America Competitors 18.45% 8.26% 0.93%

Volatility and Risk

Bank of America has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Bank of America’s competitors have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.

Institutional and Insider Ownership

68.6% of Bank of America shares are held by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are held by institutional investors. 0.2% of Bank of America shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Bank of America pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. Bank of America pays out 27.4% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend. Bank of America has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Bank of America and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of America 1 8 23 2 2.76
Bank of America Competitors 2174 8471 8558 332 2.36

Bank of America currently has a consensus price target of $26.02, suggesting a potential downside of 11.26%. As a group, “Banks” companies have a potential downside of 6.37%. Given Bank of America’s competitors higher possible upside, analysts clearly believe Bank of America has less favorable growth aspects than its competitors.

Summary

Bank of America beats its competitors on 10 of the 15 factors compared.

About Bank of America

Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S. Trust, Bank of America Private Wealth Management; Global Banking, which provides a range of lending-related products and services; Global Markets, which offers sales and trading services, and All Other, which consists of equity investments, residual expense allocations and other.

Receive News & Ratings for Bank of America Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bank of America and related companies with MarketBeat.com's FREE daily email newsletter.