Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the nation's largest discount brokerage, Charles Schwab (NYSE:SCHW) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Charles Schwab's business and see what CAPS investors are saying about the stock right now.

Charles Schwab facts

Headquarters (Founded)

San Francisco, California (1971)

Market Cap

$24.32 billion


Investment Brokerage

TTM Revenue

$5.21 billion


Founder/Chairman Charles Schwab Jr.

CEO Walter Bettinger, II

Return on Equity (average last three years)




E*Trade Financial (NASDAQ:ETFC)

CAPS members bullish on SCHW also bullish on

Bank of America (NYSE:BAC),


CAPS members bearish on SCHW also bearish on

Wells Fargo (NYSE:WFC),

Merrill Lynch (NYSE:MER)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 464 of the 505 members who have rated Charles Schwab -- some 92% -- believe the stock will outperform the S&P 500 going forward. These bulls include my Foolish colleague Todd Wenning (TMFPhila) and millegrazie, both of whom are ranked in the top 30% of our community.

Last week, Todd noted an interesting stat: "More cash and [short term] investments on balance sheet ($27 b) than the company's current market cap ($25b)...People will continue to seek financial advice, perhaps even more so now."

An earlier pitch from millegrazie shares that bullish sentiment, highlighting the stock as a way to capitalize on the financial mess:

A financial that should gain market share as others lose it. Aging Baby Boomers rolling over their IRA's. Great customer service and banking arm didn't get started until subrime ridiculousness was well under way. Chart holding up well under the recent pressure of other financials tanking (again!).

What do you think about Charles Schwab, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Charles Schwab and Apple are Motley Fool Stock Advisor recommendations. Bank of America is an Income Investor pick. The Fool's disclosure policy always gets a perfect score.