WallStSmart

TFS Financial Corporation (TFSL)vsWells Fargo & Company (WFC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 24684% more annual revenue ($81.14B vs $327.37M). TFSL leads profitability with a 27.7% profit margin vs 26.7%. WFC appears more attractively valued with a PEG of 1.45. WFC earns a higher WallStSmart Score of 74/100 (B).

TFSL

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 7.0Value: 3.7Quality: 3.8
Piotroski: 4/9Altman Z: -0.46

WFC

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 6.3Quality: 5.8
Piotroski: 4/9Altman Z: 0.43

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TFSL3 strengths · Avg: 9.0/10
Operating MarginProfitability
37.5%10/10

Strong operational efficiency at 37.5%

Profit MarginProfitability
27.7%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

WFC6 strengths · Avg: 8.5/10
Market CapQuality
$249.77B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.4%8/10

Strong operational efficiency at 29.4%

Free Cash FlowQuality
$4.12B8/10

Generating 4.1B in free cash flow

Areas to Watch

TFSL4 concerns · Avg: 2.3/10
Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

PEG RatioValuation
72.622/10

Expensive relative to growth rate

P/E RatioValuation
46.0x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

WFC1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.432/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : TFSL

The strongest argument for TFSL centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 27.7% and operating margin at 37.5%. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : WFC

The strongest argument for WFC centers on Market Cap, Profit Margin, P/E Ratio. Profitability is solid with margins at 26.7% and operating margin at 29.4%. PEG of 1.45 suggests the stock is reasonably priced for its growth.

Bear Case : TFSL

The primary concerns for TFSL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 46.0x leaves little room for execution misses. Debt-to-equity of 2.60 is elevated, increasing financial risk.

Bear Case : WFC

The primary concerns for WFC are Altman Z-Score.

Key Dynamics to Monitor

WFC carries more volatility with a beta of 1.06 — expect wider price swings.

TFSL is growing revenue faster at 11.0% — sustainability is the question.

WFC generates stronger free cash flow (4.1B), providing more financial flexibility.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WFC scores higher overall (74/100 vs 52/100), backed by strong 26.7% margins. Both earn "Strong Buy" and "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.

TFS Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

TFS Financial Corporation, provides retail banking services for consumers in the United States.

Visit Website →

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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