WallStSmart

Principal Financial Group Inc (PFG)vsWells Fargo & Company (WFC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 400% more annual revenue ($83.11B vs $16.63B). WFC leads profitability with a 27.6% profit margin vs 11.9%. PFG appears more attractively valued with a PEG of 1.06. PFG earns a higher WallStSmart Score of 79/100 (B+).

PFG

Strong Buy

79

out of 100

Grade: B+

Growth: 6.7Profit: 6.5Value: 6.3Quality: 4.0
Piotroski: 3/9Altman Z: 0.29

WFC

Strong Buy

74

out of 100

Grade: B

Growth: 6.0Profit: 7.5Value: 7.0Quality: 5.5
Piotroski: 4/9Altman Z: -0.38

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PFG5 strengths · Avg: 8.4/10
EPS GrowthGrowth
206.3%10/10

Earnings expanding 206.3% YoY

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
25.4%8/10

Revenue surging 25.4% year-over-year

Free Cash FlowQuality
$1.48B8/10

Generating 1.5B in free cash flow

WFC6 strengths · Avg: 9.2/10
Market CapQuality
$250.35B10/10

Mega-cap, among the largest globally

P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Operating MarginProfitability
34.2%10/10

Strong operational efficiency at 34.2%

Profit MarginProfitability
27.6%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$8.87B8/10

Generating 8.9B in free cash flow

Areas to Watch

PFG2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.292/10

Distress zone — elevated risk

WFC3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

Debt/EquityHealth
1.263/10

Elevated debt levels

Altman Z-ScoreHealth
-0.382/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : PFG

The strongest argument for PFG centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 25.4% demonstrates continued momentum. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : WFC

The strongest argument for WFC centers on Market Cap, P/E Ratio, Operating Margin. Profitability is solid with margins at 27.6% and operating margin at 34.2%. PEG of 1.30 suggests the stock is reasonably priced for its growth.

Bear Case : PFG

The primary concerns for PFG are Piotroski F-Score, Altman Z-Score.

Bear Case : WFC

The primary concerns for WFC are Revenue Growth, Debt/Equity, Altman Z-Score.

Key Dynamics to Monitor

PFG profiles as a growth stock while WFC is a value play — different risk/reward profiles.

WFC carries more volatility with a beta of 0.95 — expect wider price swings.

PFG is growing revenue faster at 25.4% — sustainability is the question.

WFC generates stronger free cash flow (8.9B), providing more financial flexibility.

Bottom Line

PFG scores higher overall (79/100 vs 74/100) and 25.4% 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.

Principal Financial Group Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Principal Financial Group is an American global financial investment management and insurance company headquartered in Des Moines, Iowa.

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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