BAC - Bank of America Earnings Report

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BAC - Bank of America

 Current Price: 25,83$
Leverage: X5
Stop Loss Limit: 22$
Target: 29,70$
Annual Financing Costs: 4,56%

Here are the interesting numbers of Bank of America to me

Diluted EPS: 13.10.2016: 0,41 18.7.2017: 0,46  13.10.2017: 0,49 (+4,3% QoQ, +17% YoY)
Book value: 13.10.2016: 24,19 18.7.2017: 24,88 13.10.2017: 23,92 (-2,8% QoQ, +1,1% YoY)
Share price:  13.10.2016: 16,00 18.7.2017: 23,90 13.10.2017: 25,83 (+8% QoQ, +61% YoY)

Due Diligence On Ownership

 Bank of America has a 62,71% ownership by large financial management institutions. The biggest one is Blackrock Inc.

See: http://www.nasdaq.com/de/symbol/bac/ownership-summary


 Balance Sheet Analyses

 ROE: 7,02%
Equity Ratio: 12%
P/B: 1,2
P/E: 16,4
A Final Word In Regards Of Risks Involved

 If you are new on this blog please read through the introduction (the big picture) before following my strategy and advises. You can find this introduction here.

 Comparison of Value per Share Bank of America - Citigroup

I already analysed Citigroup in details. Here I show why I think that Citigroup and Bank of America perform similar to each other.

EPS (9 Months) / Share Price - Bank of America: 1,42$ / 26$ = 5,4%
EPS (9 Months) / Share Price - Citigroup: 4,05$ / 72,11$ = 5,6%

That means that Citigroup and Bank of America transfer nearly the same additional wealth per share through 9 months into their assets.

Citigroup share price is 17,4% up since 1st of January 2017.
Bank of America share price is 14% up since 1st of January 2017.

As Citigroup and Bank of America currently perform very similar I expect similar results. My target of Citigroup is 15% higher at 83$ and so is the target of Bank of America 15% higher at 29,70$. From a diversification standpoint of a professional investor an investment into Bank of America makes sense if you invested already into Citigroup.

Here is another article that compares Bank of America to Citigroup and concludes that you basically should own both companies:

https://seekingalpha.com/article/4043068-bank-america-vs-citigroup


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