WesBanco (NASDAQ:WSBC) versus Capital One Financial (NYSE:COF) Head-To-Head Analysis

WesBanco (NASDAQ:WSBC) and Capital One Financial (NYSE:COF) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Dividends

WesBanco pays an annual dividend of $1.48 per share and has a dividend yield of 4.8%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.3%. WesBanco pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital One Financial pays out 20.2% of its earnings in the form of a dividend. WesBanco has increased its dividend for 14 consecutive years. WesBanco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

61.4% of WesBanco shares are held by institutional investors. Comparatively, 89.8% of Capital One Financial shares are held by institutional investors. 2.8% of WesBanco shares are held by company insiders. Comparatively, 1.3% of Capital One Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares WesBanco and Capital One Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WesBanco	15.89%	6.30%	0.86%
Capital One Financial	9.46%	9.45%	1.17%

Valuation and Earnings

This table compares WesBanco and Capital One Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WesBanco	$650.30 million	3.17	$151.51 million	$1.53	20.12
Capital One Financial	$39.71 billion	1.80	$4.75 billion	$11.91	15.76

Capital One Financial has higher revenue and earnings than WesBanco. Capital One Financial is trading at a lower price-to-earnings ratio than WesBanco, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for WesBanco and Capital One Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WesBanco	0	2	4	1	2.86
Capital One Financial	0	4	12	2	2.89

WesBanco currently has a consensus price target of $38.71, suggesting a potential upside of 25.74%. Capital One Financial has a consensus price target of $207.73, suggesting a potential upside of 10.68%. Given WesBanco’s higher possible upside, equities analysts clearly believe WesBanco is more favorable than Capital One Financial.

Volatility and Risk

WesBanco has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Summary

Capital One Financial beats WesBanco on 12 of the 18 factors compared between the two stocks.

About WesBanco

WesBanco, Inc. operates as the bank holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, mortgage banking, and insurance services to individuals and businesses in the United States. The company operates through two segments, Community Banking, and Trust and Investment Services. It offers commercial demand, individual demand, and time deposit accounts; commercial, mortgage and individual installment loans; retail loans, such as residential real estate mortgage loans, home equity lines of credit, and loans for other consumer purposes; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and various non-traditional offerings, such as insurance and securities brokerage services. The company also provides trust services; and various alternative investment products, including mutual funds and annuities. In addition, it acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.