Comparison between regional banking stocks USB and MTB shows USB as a more compelling choice

From Nasdaq: 2025-07-02 13:26:00

U.S. Bancorp (USB) and M&T Bank Corporation (MTB) are U.S. regional banks facing similar industry challenges like interest rates and credit cycles. Both have distinct growth strategies and geographic exposures, making a direct comparison crucial for investors.

U.S. Bancorp (USB) has been strengthening its market position with strategic acquisitions and partnerships. The company’s focus on fee-based businesses and steady growth in net interest income (NII) position it well for revenue expansion and sustainable growth.

M&T Bank Corporation (MTB) has shown impressive revenue growth, driven by higher NII and non-interest income. Its strong balance sheet and diversified deposit franchise support steady loan and deposit growth, with positive projections for 2025.

In terms of valuation, U.S. Bancorp (USB) trades at a lower P/E ratio compared to its historical median and industry average. This, along with its strategic initiatives and balanced revenue sources, makes it an attractive investment choice for value-oriented investors.

Both USB and MTB have shown strong performance in the past three months, outperforming industry and S&P 500 growth. While MTB offers appealing earnings momentum, USB’s lower valuation and comprehensive growth strategies make it a more compelling choice for long-term investors.

Zacks Research names U.S. Bancorp (USB) as a top stock pick with strong growth potential. As the company continues to focus on strategic acquisitions and revenue diversification, investors can expect sustainable returns and long-term growth opportunities.



Read more at Nasdaq: USB vs. MTB: Which Regional Banking Stock Holds More Upside?