In the following video, Motley Fool financials analyst David Hanson responds to a Fool reader on Facebook, who writes, "Citigroup (NYSE:C) is much better than Bank of America (NYSE:BAC) -- better PEG/PE." David tells investors why looking at the price to earnings ratio may not be the best way to evaluate banks because bank earnings are often very lumpy. Instead, he gives us a better way to measure banking stocks that will show which of these two banking giants is truly the better buy.
David Hanson has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.