Better Buy: Bank of America vs. Wells Fargo

Both banks are heavy commercial players and will see pressure on their loan margins as a result of the low-interest-rate environment. Bank of America has a $35 billion capital cushion above its required common equity tier 1 (CET1) capital ratio, which is a measure of a bank's core capital expressed as a percentage of its risk-weighted assets. Wells Fargo had a $28 billion capital cushion above its required CET1 capital ratio, and liquidity of $494 billion.