WallStSmart

The Bank of New York Mellon Corporation (BK)vsWells Fargo & Company (WFC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 300% more annual revenue ($80.04B vs $20.00B). BK leads profitability with a 27.7% profit margin vs 26.7%. BK appears more attractively valued with a PEG of 1.27. BK earns a higher WallStSmart Score of 74/100 (B).

BK

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 7.5Value: 10.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.04

WFC

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 10.0Quality: 5.8
Piotroski: 4/9Altman Z: 0.43
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKUndervalued (+64.9%)

Margin of Safety

+64.9%

Fair Value

$346.32

Current Price

$117.99

$228.33 discount

UndervaluedFair: $346.32Overvalued
WFCUndervalued (+53.8%)

Margin of Safety

+53.8%

Fair Value

$173.78

Current Price

$80.26

$93.52 discount

UndervaluedFair: $173.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BK6 strengths · Avg: 8.7/10
Operating MarginProfitability
37.3%10/10

Strong operational efficiency at 37.3%

Market CapQuality
$82.22B9/10

Large-cap with strong market position

Profit MarginProfitability
27.7%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
30.5%8/10

Earnings expanding 30.5% YoY

WFC6 strengths · Avg: 8.5/10
Market CapQuality
$245.65B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
12.7x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

Free Cash FlowQuality
$4.12B8/10

Generating 4.1B in free cash flow

Areas to Watch

BK1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.042/10

Distress zone — elevated risk

WFC2 concerns · Avg: 3.0/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.432/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BK

The strongest argument for BK centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.7% and operating margin at 37.3%. PEG of 1.27 suggests the stock is reasonably priced for its growth.

Bull Case : WFC

The strongest argument for WFC centers on Market Cap, Profit Margin, P/E Ratio. Profitability is solid with margins at 26.7% and operating margin at 29.9%.

Bear Case : BK

The primary concerns for BK are Altman Z-Score.

Bear Case : WFC

The primary concerns for WFC are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

BK profiles as a mature stock while WFC is a value play — different risk/reward profiles.

BK carries more volatility with a beta of 1.08 — expect wider price swings.

BK is growing revenue faster at 7.8% — sustainability is the question.

BK generates stronger free cash flow (4.7B), providing more financial flexibility.

Bottom Line

BK scores higher overall (74/100 vs 72/100), backed by strong 27.7% margins. WFC offers better value entry with a 53.8% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

The Bank of New York Mellon Corporation

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

The Bank of New York Mellon Corporation, commonly known as BNY Mellon, is a multinational American investment banking services holding company headquartered in New York City.

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Wells Fargo & Company

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.

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