Both Citigroup and Bank of America trade at a discount to their tangible book value. In the following video, Matt Koppenheffer and David Hanson make a case for which bank will trade at a premium to tangible book value first. David goes with Citi. The stock has been on a tear this past year, and the bank has none of the lawsuit drama hanging over it that Bank of America has. Matt thinks Bank of America will win out. There are lawsuits, but as these settle, Matt thinks there is more certainty in the bank, and that, with improving operations, will drive the stock higher.

Check out the video for more details.


Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

The article Bank Stocks Are Dirt Cheap -- but for How Long? originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Behavioral Finance

Why do investors make the decisions that they do?

View Course »

Portfolio Basics

What are stocks? Learn how to start investing.

View Course »

Add a Comment

*0 / 3000 Character Maximum