Citigroup and Wells Fargo both beat second-quarter 2026 expectations, but Citigroup is emerging as the more compelling opportunity due to faster earnings growth, stronger revenue momentum, and a cheaper valuation. Citigroup's revenues rose 14.3% to a decade high, and it targets a 10-11% return on tangible common equity in 2026, while earnings are projected to jump 39.7% this year. Wells Fargo's revenues grew 8.6%, and it expects net interest income to approach $50 billion in 2026 after the Fed lifted its asset cap, but earnings are seen rising only 11.6%. Citigroup trades at a trailing price-to-earnings ratio of 11.43 times, below Wells Fargo's 11.72 times and the industry's 14.76 times, and it announced a 12% dividend increase along with a $30-billion share repurchase program. Both stocks carry a Zacks Rank #3, but Citigroup's accelerating turnaround and superior near-term growth give it greater upside potential.
Citigroup Inc.Citigroup reported strong Q2 results with 14.3% revenue growth, higher earnings growth, cheaper valuation, and announced a 12% dividend increase and $30B buyback.
Wells Fargo & CompanyWells Fargo's Q2 results showed slower revenue growth (8.6%) and lower earnings growth (11.6%) compared to Citigroup, making it less compelling.