Bank of America (NYSE:BAC) vs. TOP Financial Group (NASDAQ:TOP) Critical Contrast

TOP Financial Group (NASDAQ:TOP) and Bank of America (NYSE:BAC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for TOP Financial Group and Bank of America, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOP Financial Group	1	0	0	0	1.00
Bank of America	0	5	23	0	2.82

Bank of America has a consensus price target of $58.59, suggesting a potential upside of 7.86%. Given Bank of America’s stronger consensus rating and higher probable upside, analysts plainly believe Bank of America is more favorable than TOP Financial Group.

Volatility and Risk

TOP Financial Group has a beta of -1.36, indicating that its stock price is 236% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares TOP Financial Group and Bank of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOP Financial Group	N/A	N/A	N/A
Bank of America	15.70%	10.76%	0.88%

Institutional & Insider Ownership

0.3% of TOP Financial Group shares are held by institutional investors. Comparatively, 70.7% of Bank of America shares are held by institutional investors. 85.6% of TOP Financial Group shares are held by company insiders. Comparatively, 0.3% of Bank of America shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares TOP Financial Group and Bank of America”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOP Financial Group	$3.33 million	12.07	-$5.97 million	N/A	N/A
Bank of America	$107.26 billion	3.70	$27.13 billion	$3.67	14.80

Bank of America has higher revenue and earnings than TOP Financial Group.

Summary

Bank of America beats TOP Financial Group on 10 of the 12 factors compared between the two stocks.

About TOP Financial Group

TOP Financial Group Limited, through its subsidiaries, operates as an online brokerage company in Hong Kong. It is involved in the trading of local and overseas equities, futures, and options products; and the provision of brokerage and value-added services, including trade order placement and execution, account management, and customer support services. The company provides a range of futures products, such as index futures, forex futures, agricultural product futures, energy futures, and precious metal futures. It also offers stock brokerage, options brokerage, consulting services, currency exchange services, structured note subscriber services, and margin financing services. The company was formerly known as Zhong Yang Financial Group Limited and changed its name to TOP Financial Group Limited in July 2022. TOP Financial Group Limited was founded in 2015 and is based in Hong Kong, Hong Kong. TOP Financial Group Limited is a subsidiary of Zhong Yang Holdings (BVI) Limited.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.