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Cramer: Goldman Sachs Is A Great Firm, But Bank Of America Is A 'National Juggernaut'

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Cramer: Goldman Sachs Is A Great Firm, But Bank Of America Is A 'National Juggernaut'

Some of Wall Street's biggest banks on Tuesday reported their respective earnings, but Bank of America Corp (NYSE: BAC) may have emerged the winner, Jim Cramer explained.

Shares of Goldman Sachs Group Inc (NYSE: GS) were trading lower by nearly 2 percent Tuesday afternoon. Part of the bank's troubles can be attributed to its worst quarter ever in FICC (fixed income instruments, currencies, and commodities) and the only potential fix is a spike in volatility.

On the positive side, Goldman Sachs did buy back around $1.5 billion worth of its own stock and the stock continues to trade above its book value.

Meanwhile, Bank of America reported a "great, classic grind-it-out quarter," Cramer said. Among the main highlights of the quarter includes 500 basis points of operating leverage while also making more money per customer amid strength in mobile.

"There's nothing to dislike here, it's fine," Cramer emphasized. "Goldman earns 90 percent of what the consumer bank at Bank of America earns. Goldman is a great firm but Bank of America is a national juggernaut."

Cramer also likes Bank of America because it has shown a willingness to "keep on grinding" regardless of the outside environment. Management has earned a reputation of not over-promising and under-delivering.

Related Links:

After Q2 EPS Beat, Is Bank Of America Underappreciated?

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Posted-In: bank earnings bank stocks banks Book Value FICC tradingEarnings Media Best of Benzinga

 

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