TFC vs. BAC

Last updated Jun 3, 2026

TFC (Truist Financial Corporation) and BAC (Bank of America Corporation) are both stocks. Both are in the Financial Services sector — TFC in Banks - Regional, BAC in Banks - Diversified. Over the past 10 years, TFC returned 7.09%/yr vs 16.29%/yr for BAC. A 0.62 correlation means they provide meaningful diversification when combined.

Performance

TFC vs. BAC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Truist Financial Corporation (TFC) and Bank of America Corporation (BAC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TFC achieves a -0.19% return, which is significantly higher than BAC's -4.04% return. Over the past 10 years, TFC has underperformed BAC with an annualized return of 7.09%, while BAC has yielded a comparatively higher 16.29% annualized return.

TFC

• 1D: 2.67%
• 1M: -4.52%
• YTD: -0.19%
• 6M: 5.68%
• 1Y: 28.22%
• 3Y*: 20.51%
• 5Y*: 0.10%
• 10Y*: 7.09%

BAC

• 1D: 1.88%
• 1M: -1.43%
• YTD: -4.04%
• 6M: -0.26%
• 1Y: 21.73%
• 3Y*: 25.15%
• 5Y*: 6.41%
• 10Y*: 16.29%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TFC vs. BAC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TFC Truist Financial Corporation	-0.19%	19.05%	23.72%	-8.59%	-23.53%	26.08%	-11.16%	34.55%	-10.24%	8.66%
BAC Bank of America Corporation	-4.04%	28.04%	33.85%	4.83%	-23.82%	49.61%	-11.63%	46.19%	-15.00%	35.69%

Correlation

The correlation between TFC and BAC is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Mar 27, 1990	0.62

The correlation between TFC and BAC shifts across timeframes, from 0.62 (all time) to 0.79 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TFC : $60.95B BAC : $389.27B
EPS TFC : $4.28 BAC : $4.19
PE Ratio TFC : 11.23 BAC : 12.52
PEG Ratio TFC : 1.32 BAC : 5.03
PS Ratio TFC : 2.04 BAC : 2.27
PB Ratio TFC : 1.03 BAC : 1.41
Total Revenue (TTM) TFC : $30.47B BAC : $174.85B
Gross Profit (TTM) TFC : $19.17B BAC : $110.47B
EBITDA (TTM) TFC : $6.99B BAC : $41.74B

Return for Risk

TFC vs. BAC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TFC

TFC Risk / Return Rank: 70
TFC Sharpe Ratio Rank: 76
TFC Sortino Ratio Rank: 69
TFC Omega Ratio Rank: 68
TFC Calmar Ratio Rank: 66
TFC Martin Ratio Rank: 69

BAC

BAC Risk / Return Rank: 66
BAC Sharpe Ratio Rank: 72
BAC Sortino Ratio Rank: 64
BAC Omega Ratio Rank: 62
BAC Calmar Ratio Rank: 64
BAC Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TFC vs. BAC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Truist Financial Corporation (TFC) and Bank of America Corporation (BAC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TFC	BAC	Difference
Sharpe ratio Return per unit of total volatility	1.23	1.02	+0.21
Sortino ratio Return per unit of downside risk	1.72	1.44	+0.27
Omega ratio Gain probability vs. loss probability	1.22	1.18	+0.03
Calmar ratio Return relative to maximum drawdown	1.32	1.20	+0.12
Martin ratio Return relative to average drawdown	3.57	3.13	+0.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TFC vs. BAC - Sharpe Ratio Comparison

The current TFC Sharpe Ratio is 1.23, which is comparable to the BAC Sharpe Ratio of 1.02. The chart below compares the historical Sharpe Ratios of TFC and BAC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TFC	BAC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.23	1.02	+0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.00	0.24	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.21	0.53	-0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.20	+0.08

Drawdowns

TFC vs. BAC - Drawdown Comparison

The maximum TFC drawdown since its inception was -66.56%, smaller than the maximum BAC drawdown of -93.10%. Use the drawdown chart below to compare losses from any high point for TFC and BAC.

Drawdown Indicators

	TFC	BAC	Difference
Max Drawdown Largest peak-to-trough decline	-66.56%	-93.10%	+26.54%
Max Drawdown (1Y) Largest decline over 1 year	-20.67%	-17.93%	-2.74%
Max Drawdown (3Y) Largest decline over 3 years	-26.93%	-27.51%	+0.58%
Max Drawdown (5Y) Largest decline over 5 years	-59.11%	-46.64%	-12.47%
Max Drawdown (10Y) Largest decline over 10 years	-59.11%	-48.95%	-10.16%
Current Drawdown Current decline from peak	-11.99%	-7.81%	-4.18%
Average Drawdown Average peak-to-trough decline	-13.84%	-28.32%	+14.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.67%	6.91%	+0.76%

Volatility

TFC vs. BAC - Volatility Comparison

Truist Financial Corporation (TFC) has a higher volatility of 7.69% compared to Bank of America Corporation (BAC) at 6.54%. This indicates that TFC's price experiences larger fluctuations and is considered to be riskier than BAC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TFC	BAC	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.69%	6.54%	+1.15%
Volatility (6M) Calculated over the trailing 6-month period	17.06%	16.12%	+0.94%
Volatility (1Y) Calculated over the trailing 1-year period	23.00%	21.33%	+1.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.85%	26.85%	+5.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.60%	30.69%	+2.91%

Dividends

TFC vs. BAC - Dividend Comparison

TFC's dividend yield for the trailing twelve months is around 4.32%, more than BAC's 2.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BAC Bank of America Corporation	2.10%	1.96%	2.28%	2.73%	2.60%	1.75%	2.38%	1.87%	2.19%	1.32%	1.13%	1.19%
TFC Truist Financial Corporation	4.32%	4.23%	4.79%	5.63%	4.65%	3.18%	3.76%	3.04%	3.60%	2.53%	2.45%	2.78%

Financials

TFC vs. BAC - Profitability Comparison

The chart below illustrates the profitability comparison between Truist Financial Corporation and Bank of America Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TFC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Truist Financial Corporation reported a gross profit of 4.67B and revenue of 7.41B. Therefore, the gross margin over that period was 63.1%.

BAC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Bank of America Corporation reported a gross profit of 28.94B and revenue of 30.27B. Therefore, the gross margin over that period was 95.6%.

TFC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Truist Financial Corporation reported an operating income of 1.69B and revenue of 7.41B, resulting in an operating margin of 22.8%.

BAC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Bank of America Corporation reported an operating income of 10.40B and revenue of 30.27B, resulting in an operating margin of 34.4%.

TFC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Truist Financial Corporation reported a net income of 1.48B and revenue of 7.41B, resulting in a net margin of 20.0%.

BAC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Bank of America Corporation reported a net income of 8.58B and revenue of 30.27B, resulting in a net margin of 28.4%.

Frequently Asked Questions

Can I hold both TFC and BAC in my portfolio?

TFC and BAC have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TFC or BAC?

TFC has higher volatility (7.69%) compared to BAC (6.54%). In terms of maximum drawdown, TFC dropped -66.56% vs BAC's -93.10%.

Which has better risk-adjusted returns?

TFC currently has the higher Sharpe Ratio (1.23 vs 1.02), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.