By Takeover Analyst:Since I first expressed my belief that US Bancorp (USB) would outperform Wells Fargo (WFC) here, the firm gained 11.9%, beating its competitor by 1,467 basis points. Going forward, I now see greater upside in Wells Fargo. The Street currently prefers Wells Fargo with its "buy" rating.
From a multiples perspective, Wells Fargo is the cheaper of the two. It trades at a respective 10.9x and 8.5x past and forward earnings with a dividend yield of 1.6%. It is 30% more volatile than the broader market and US Bancorp. US Bancorp trades at a respective 11.9x and 10x past and forward earnings with a dividend yield of 1.7%.
At the fourth quarter earnings call, US Bancorp's CEO, Richard Davis, noted strong results amidst a challenging environment:
Our company achieved record net income for 2011, driven by record net revenue in the fourth quarter and for the full year. And we
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