SCHW vs. WFC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at SCHW and WFC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
WFC’s market capitalization of 258.71 billion USD is significantly greater than SCHW’s 163.49 billion USD, highlighting its more substantial market valuation.
With betas of 0.93 for SCHW and 1.16 for WFC, both stocks show similar sensitivity to overall market movements.
| Symbol | SCHW | WFC |
|---|---|---|
| Company Name | The Charles Schwab Corporation | Wells Fargo & Company |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Capital Markets | Banks - Diversified |
| CEO | Richard Andrew Wurster CMT | Charles W. Scharf |
| Price | 89.98 USD | 79.5 USD |
| Market Cap | 163.49 billion USD | 258.71 billion USD |
| Beta | 0.93 | 1.16 |
| Exchange | NYSE | NYSE |
| IPO Date | September 22, 1987 | June 1, 1972 |
| ADR | No | No |
Historical Performance
This chart compares the performance of SCHW and WFC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
SCHW
13.73%
Financial - Capital Markets Industry
- Max
- 41.11%
- Q3
- 23.02%
- Median
- 15.56%
- Q1
- 10.24%
- Min
- -2.89%
SCHW’s Return on Equity of 13.73% is on par with the norm for the Financial - Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.
WFC
11.11%
Banks - Diversified Industry
- Max
- 19.46%
- Q3
- 14.22%
- Median
- 11.72%
- Q1
- 9.05%
- Min
- 5.86%
WFC’s Return on Equity of 11.11% is on par with the norm for the Banks - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
SCHW
6.46%
Financial - Capital Markets Industry
- Max
- 22.50%
- Q3
- 13.31%
- Median
- 8.31%
- Q1
- 2.67%
- Min
- -9.06%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Capital Markets industry.
WFC
3.42%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 3.07%
- Median
- 1.60%
- Q1
- 0.83%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.
Net Profit Margin
SCHW
24.76%
Financial - Capital Markets Industry
- Max
- 24.76%
- Q3
- 13.96%
- Median
- 11.28%
- Q1
- 5.88%
- Min
- -2.90%
A Net Profit Margin of 24.76% places SCHW in the upper quartile for the Financial - Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.
WFC
16.19%
Banks - Diversified Industry
- Max
- 29.41%
- Q3
- 26.09%
- Median
- 18.88%
- Q1
- 14.88%
- Min
- 7.95%
WFC’s Net Profit Margin of 16.19% is aligned with the median group of its peers in the Banks - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
SCHW
31.86%
Financial - Capital Markets Industry
- Max
- 56.86%
- Q3
- 32.04%
- Median
- 17.94%
- Q1
- 11.70%
- Min
- -2.66%
SCHW’s Operating Profit Margin of 31.86% is around the midpoint for the Financial - Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.
WFC
18.70%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 36.89%
- Median
- 28.16%
- Q1
- 15.07%
- Min
- 8.60%
WFC’s Operating Profit Margin of 18.70% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | SCHW | WFC |
|---|---|---|
| Return on Equity (TTM) | 13.73% | 11.11% |
| Return on Assets (TTM) | 1.40% | 1.03% |
| Return on Invested Capital (TTM) | 6.46% | 3.42% |
| Net Profit Margin (TTM) | 24.76% | 16.19% |
| Operating Profit Margin (TTM) | 31.86% | 18.70% |
| Gross Profit Margin (TTM) | 77.90% | 62.53% |
Financial Strength
Current Ratio
SCHW
0.52
Financial - Capital Markets Industry
- Max
- 4.60
- Q3
- 3.23
- Median
- 1.28
- Q1
- 0.79
- Min
- 0.35
For the Financial - Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
WFC
0.27
Banks - Diversified Industry
- Max
- 0.67
- Q3
- 0.49
- Median
- 0.39
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio
SCHW
0.81
Financial - Capital Markets Industry
- Max
- 7.42
- Q3
- 3.10
- Median
- 0.45
- Q1
- 0.15
- Min
- 0.00
SCHW’s Debt-to-Equity Ratio of 0.81 is typical for the Financial - Capital Markets industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
WFC
1.73
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.66
- Median
- 3.14
- Q1
- 1.90
- Min
- 0.10
Falling into the lower quartile for the Banks - Diversified industry, WFC’s Debt-to-Equity Ratio of 1.73 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
SCHW
1.46
Financial - Capital Markets Industry
- Max
- 8.80
- Q3
- 8.66
- Median
- 1.90
- Q1
- 0.49
- Min
- -5.17
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Capital Markets industry.
WFC
0.55
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.74
- Median
- 0.46
- Q1
- 0.30
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | SCHW | WFC |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 0.27 |
| Quick Ratio (TTM) | 0.52 | 0.27 |
| Debt-to-Equity Ratio (TTM) | 0.81 | 1.73 |
| Debt-to-Asset Ratio (TTM) | 0.09 | 0.16 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.50 | 4.43 |
| Interest Coverage Ratio (TTM) | 1.46 | 0.55 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for SCHW and WFC. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
SCHW
1.16%
Financial - Capital Markets Industry
- Max
- 4.98%
- Q3
- 1.99%
- Median
- 1.22%
- Q1
- 0.08%
- Min
- 0.00%
SCHW’s Dividend Yield of 1.16% is consistent with its peers in the Financial - Capital Markets industry, providing a dividend return that is standard for its sector.
WFC
2.01%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.27%
- Median
- 3.17%
- Q1
- 2.26%
- Min
- 0.00%
WFC’s Dividend Yield of 2.01% is in the lower quartile for the Banks - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
SCHW
35.57%
Financial - Capital Markets Industry
- Max
- 111.94%
- Q3
- 43.17%
- Median
- 23.26%
- Q1
- 0.00%
- Min
- 0.00%
SCHW’s Dividend Payout Ratio of 35.57% is within the typical range for the Financial - Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
WFC
31.63%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.88%
- Median
- 26.11%
- Q1
- 0.00%
- Min
- 0.00%
WFC’s Dividend Payout Ratio of 31.63% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | SCHW | WFC |
|---|---|---|
| Dividend Yield (TTM) | 1.16% | 2.01% |
| Dividend Payout Ratio (TTM) | 35.57% | 31.63% |
Valuation
Price-to-Earnings Ratio
SCHW
25.20
Financial - Capital Markets Industry
- Max
- 42.65
- Q3
- 30.09
- Median
- 23.20
- Q1
- 14.91
- Min
- 8.19
SCHW’s P/E Ratio of 25.20 is within the middle range for the Financial - Capital Markets industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
WFC
13.04
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.42
- Median
- 11.93
- Q1
- 9.79
- Min
- 7.43
WFC’s P/E Ratio of 13.04 is within the middle range for the Banks - Diversified industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
SCHW
1.61
Financial - Capital Markets Industry
- Max
- 4.05
- Q3
- 2.77
- Median
- 1.61
- Q1
- 0.84
- Min
- 0.02
SCHW’s Forward PEG Ratio of 1.61 is within the middle range of its peers in the Financial - Capital Markets industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
WFC
0.69
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.44
- Median
- 1.13
- Q1
- 0.73
- Min
- 0.45
In the lower quartile for the Banks - Diversified industry, WFC’s Forward PEG Ratio of 0.69 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
SCHW
6.24
Financial - Capital Markets Industry
- Max
- 14.34
- Q3
- 7.19
- Median
- 3.02
- Q1
- 1.55
- Min
- 0.04
The P/S Ratio is often not a primary valuation tool in the Financial - Capital Markets industry.
WFC
2.09
Banks - Diversified Industry
- Max
- 4.15
- Q3
- 2.93
- Median
- 2.23
- Q1
- 1.82
- Min
- 0.94
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
Price-to-Book Ratio
SCHW
3.30
Financial - Capital Markets Industry
- Max
- 9.60
- Q3
- 6.71
- Median
- 4.09
- Q1
- 2.18
- Min
- 0.80
SCHW’s P/B Ratio of 3.30 is within the conventional range for the Financial - Capital Markets industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
WFC
1.44
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.45
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
WFC’s P/B Ratio of 1.44 is within the conventional range for the Banks - Diversified industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | SCHW | WFC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 25.20 | 13.04 |
| Forward PEG Ratio (TTM) | 1.61 | 0.69 |
| Price-to-Sales Ratio (P/S, TTM) | 6.24 | 2.09 |
| Price-to-Book Ratio (P/B, TTM) | 3.30 | 1.44 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 16.70 | 62.75 |
| EV-to-EBITDA (TTM) | 17.23 | 12.85 |
| EV-to-Sales (TTM) | 6.43 | 3.19 |