WallStSmart

Webster Financial Corporation (WBS)vsWells Fargo & Company (WFC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 2941% more annual revenue ($83.03B vs $2.73B). WBS leads profitability with a 37.4% profit margin vs 27.2%. WFC appears more attractively valued with a PEG of 1.66. WFC earns a higher WallStSmart Score of 76/100 (B+).

WBS

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: -0.74

WFC

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: -0.38

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

WBS4 strengths · Avg: 9.5/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.4%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
49.5%10/10

Strong operational efficiency at 49.5%

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

WFC6 strengths · Avg: 8.8/10
Market CapQuality
$264.46B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
37.1%10/10

Strong operational efficiency at 37.1%

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
25.0%8/10

Earnings expanding 25.0% YoY

Areas to Watch

WBS3 concerns · Avg: 2.7/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Free Cash FlowQuality
$-299.22M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.742/10

Distress zone — elevated risk

WFC3 concerns · Avg: 2.3/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.382/10

Distress zone — elevated risk

Debt/EquityHealth
2.551/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : WBS

The strongest argument for WBS centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 37.4% and operating margin at 49.5%.

Bull Case : WFC

The strongest argument for WFC centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.2% and operating margin at 37.1%.

Bear Case : WBS

The primary concerns for WBS are PEG Ratio, Free Cash Flow, Altman Z-Score.

Bear Case : WFC

The primary concerns for WFC are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.55 is elevated, increasing financial risk.

Key Dynamics to Monitor

WBS carries more volatility with a beta of 1.00 — expect wider price swings.

WFC is growing revenue faster at 9.5% — sustainability is the question.

WFC generates stronger free cash flow (9.1B), providing more financial flexibility.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WFC scores higher overall (76/100 vs 70/100), backed by strong 27.2% margins. 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.

Webster Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Webster Financial Corporation is the banking holding company for Webster Bank, a National Association that provides a variety of banking, investment, and financial services to individuals, families, and businesses in the United States. The company is headquartered in Waterbury, Connecticut.

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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