Contrasting Byline Bancorp (NYSE:BY) & Wells Fargo & Company (NYSE:WFC)

Wells Fargo & Company (NYSE:WFC – Get Free Report) and Byline Bancorp (NYSE:BY – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares Wells Fargo & Company and Byline Bancorp”s revenue, earnings per share and valuation.

Wells Fargo & Company has higher revenue and earnings than Byline Bancorp. Byline Bancorp is trading at a lower price-to-earnings ratio than Wells Fargo & Company, indicating that it is currently the more affordable of the two stocks.

Dividends

Wells Fargo & Company pays an annual dividend of $2.00 per share and has a dividend yield of 2.4%. Byline Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Wells Fargo & Company pays out 29.1% of its earnings in the form of a dividend. Byline Bancorp pays out 16.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wells Fargo & Company has raised its dividend for 4 consecutive years and Byline Bancorp has raised its dividend for 1 consecutive years. Wells Fargo & Company is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Wells Fargo & Company has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Byline Bancorp has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Wells Fargo & Company and Byline Bancorp’s net margins, return on equity and return on assets.

Insider & Institutional Ownership

75.9% of Wells Fargo & Company shares are owned by institutional investors. Comparatively, 67.7% of Byline Bancorp shares are owned by institutional investors. 0.1% of Wells Fargo & Company shares are owned by company insiders. Comparatively, 29.1% of Byline Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Wells Fargo & Company and Byline Bancorp, as reported by MarketBeat.

Wells Fargo & Company currently has a consensus price target of $98.61, indicating a potential upside of 18.43%. Byline Bancorp has a consensus price target of $43.00, indicating a potential upside of 16.04%. Given Wells Fargo & Company’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Wells Fargo & Company is more favorable than Byline Bancorp.

Summary

Wells Fargo & Company beats Byline Bancorp on 13 of the 18 factors compared between the two stocks.

About Wells Fargo & Company

(Get Free Report)

Wells Fargo & Co. is a diversified and community-based financial services company, which engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance products and services. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The Consumer Banking and Lending segment offers consumer and small business banking, home lending, credit cards, auto, and personal lending. The Commercial Banking segment provides banking and credit products across industry sectors and municipalities, secured lending and lease products, and treasury management. The Corporate and Investment Banking segment is composed of corporate banking, investment banking, treasury management, commercial real estate lending and servicing, and equity and fixed income solutions, as well as sales, trading, and research capabilities. The Wealth and Investment Management segment refers to personalized wealth management, brokerage, financial planning, lending, private banking, trust, and fiduciary products and services. The company was founded by Henry Wells and William G. Fargo on March 18, 1852 and is headquartered in San Francisco, CA.

About Byline Bancorp

(Get Free Report)

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.