Wells Fargo vs. Bank of America Stock: Depends On Your Time Horizon

To my knowledge, this hasn’t gotten any media attention, but it’s an interesting fact that the Wells Fargo loan portfolio currently has a higher nonpayment rate than the Bank of America loan portfolio. Wells Fargo isn’t collecting payments from 1.40% of its loan portfolio, and Bank of America isn’t collecting payments from 1.21% of its portfolio. I call it an interesting fact rather than important data point because things like interest rates across the portfolio and the amount of capital available have much greater weight in determining whether a bank stock is a sound candidate for investment, but I mention it because it is important to be aware of when the headlines do not match the actual numbers.

If you follow analysis of Wells Fargo stock and Bank of America stock, almost every analyst will conclude that Wells Fargo is a higher quality bank investment. While I agree with the … Read the rest of this article!