Wells Fargo has outperformed its three main competitors by such a wide margin over the past three decades that one would be excused for concluding it's in a league of its own. While its shares have returned a total of 7,070% since 1986, JPMorgan Chase , Bank of America , and Citigroup , have returned only 1,110%, 521%, and 395%, respectively, over the same 30-year stretch.
Three things explain how Wells Fargo accomplished this:
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- It generates more revenue relative to shareholders' equity than JPMorgan Chase, Bank of America, and Citigroup.
- It spends less of this revenue on expenses than its three too-big-to-fail peers.
- As a result, Wells Fargo's profit margin is materially wider than that of JPMorgan Chase, Bank of America, and Citigroup.
Scroll through the brief slideshow below for a graphical illustration of these potent competitive advantages.
The article How Wells Fargo Crushes Its Competition originally appeared on Fool.com.
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