WallStSmart

Mercury General Corporation (MCY)vsWells Fargo & Company (WFC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 1253% more annual revenue ($83.03B vs $6.14B). WFC leads profitability with a 27.2% profit margin vs 13.7%. MCY appears more attractively valued with a PEG of 1.12. WFC earns a higher WallStSmart Score of 76/100 (B+).

MCY

Strong Buy

76

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 7.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.94

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

MCY5 strengths · Avg: 9.4/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.4%10/10

Every $100 of equity generates 32 in profit

EPS GrowthGrowth
100.9%10/10

Earnings expanding 100.9% YoY

Debt/EquityHealth
0.239/10

Conservative balance sheet, low leverage

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

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

MCY2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.942/10

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 : MCY

The strongest argument for MCY centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 10.5% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.

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 : MCY

The primary concerns for MCY are Piotroski F-Score, 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

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

WFC carries more volatility with a beta of 0.92 — expect wider price swings.

MCY is growing revenue faster at 10.5% — sustainability is the question.

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

Bottom Line

MCY scores higher overall (76/100 vs 76/100) and 10.5% revenue growth. 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.

Mercury General Corporation

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

Mercury General Corporation engages in underwriting personal auto insurance in the United States. The company is headquartered in Los Angeles, California.

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.

Want to dig deeper into these stocks?