WallStSmart

Charles Schwab Corp (SCHW)vsWells Fargo & Company (WFC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 207% more annual revenue ($83.11B vs $27.06B). SCHW leads profitability with a 39.3% profit margin vs 27.6%. SCHW appears more attractively valued with a PEG of 0.73. SCHW earns a higher WallStSmart Score of 80/100 (B+).

SCHW

Strong Buy

80

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 6.5
Piotroski: 6/9Altman Z: -0.14

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

SCHW6 strengths · Avg: 9.0/10
Profit MarginProfitability
39.3%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
52.7%10/10

Strong operational efficiency at 52.7%

Market CapQuality
$152.27B9/10

Large-cap with strong market position

Return on EquityProfitability
20.7%9/10

Every $100 of equity generates 21 in profit

PEG RatioValuation
0.738/10

Growing faster than its price suggests

P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

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
$6.78B8/10

Generating 6.8B in free cash flow

Areas to Watch

SCHW2 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-2.97B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.142/10

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 : SCHW

The strongest argument for SCHW centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 39.3% and operating margin at 52.7%. Revenue growth of 16.9% demonstrates continued momentum.

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 : SCHW

The primary concerns for SCHW are Free Cash Flow, Altman Z-Score.

Bear Case : WFC

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

Key Dynamics to Monitor

SCHW 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.

SCHW is growing revenue faster at 16.9% — sustainability is the question.

WFC generates stronger free cash flow (6.8B), providing more financial flexibility.

Bottom Line

SCHW scores higher overall (80/100 vs 74/100), backed by strong 39.3% margins and 16.9% 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.

Charles Schwab Corp

FINANCIAL SERVICES · CAPITAL MARKETS · USA

The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.

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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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