Home > Comparison > Financial Services > TFC vs CFG
The strategic rivalry between Truist Financial Corporation and Citizens Financial Group defines the current trajectory of the regional banking sector. Truist operates a broad, capital-intensive banking and insurance model with deep Southeastern roots, while Citizens focuses on streamlined retail and commercial banking with digital integration across a smaller footprint. This analysis contrasts their growth and risk profiles to identify which bank offers superior risk-adjusted returns for diversified portfolios navigating evolving financial markets in 2026.
Table of contents
Companies Overview
Truist Financial and Citizens Financial Group anchor regional banking across key U.S. markets with distinct scale and reach.
Truist Financial Corporation: Southeastern Banking Powerhouse
Truist Financial dominates the Southeastern and Mid-Atlantic U.S. banking sector. Its core revenue derives from diversified banking services, including consumer banking, corporate lending, and insurance. In 2021, Truist emphasized expanding its wealth management and digital banking platforms to enhance customer engagement and operational efficiency.
Citizens Financial Group, Inc.: Northeast and National Regional Bank
Citizens Financial Group positions itself as a versatile regional bank in the Northeast and select national markets. It generates revenue mainly through retail and commercial banking, with strong focus on mortgage lending, wealth management, and commercial finance. In 2021, Citizens prioritized digital deposit products and commercial banking solutions to capture market share and serve diverse industries.
Strategic Collision: Similarities & Divergences
Both banks compete with a regional banking model but differ in scope—Truist targets broad Southeastern markets, Citizens focuses on Northeast and select national niches. Truist builds scale via extensive branch networks and insurance, while Citizens leans on commercial banking and digital innovation. Their investment profiles diverge on scale and diversification versus focused regional penetration and tech-enabled services.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Truist Financial Corporation (TFC) | Citizens Financial Group, Inc. (CFG) |
|---|---|---|
| Revenue | 30.4B | 11.1B |
| Cost of Revenue | 11.5B | 3.4B |
| Operating Expenses | 12.6B | 5.4B |
| Gross Profit | 18.9B | 7.8B |
| EBITDA | 7.1B | 2.7B |
| EBIT | 6.3B | 2.3B |
| Interest Expense | 10.1B | 3.8B |
| Net Income | 5.3B | 1.8B |
| EPS | 3.86 | 3.90 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company operates with greater efficiency and delivers stronger profitability.
Truist Financial Corporation Analysis
Truist’s revenue rose sharply to 30.4B in 2025, up 25.5% year-over-year. Net income, however, showed mixed signals with a slight decline in net margin to 17.44%. The gross margin remains robust at 62.21%, highlighting strong cost control. Operating income rebounded sharply to 6.35B, signaling renewed momentum and operational efficiency.
Citizens Financial Group, Inc. Analysis
Citizens reported a revenue decline to 11.1B in 2025, down 9.7% from 2024, yet gross margin expanded to a healthy 69.75%. Net margin improved significantly to 16.42%, supported by a 23.3% EBIT growth. Despite revenue headwinds, Citizens enhanced profitability and demonstrated solid margin management in the latest year.
Margin Strength vs. Revenue Growth
Truist leads with superior top-line growth and a strong operating rebound, while Citizens excels in margin improvement despite shrinking revenue. Truist’s higher scale and rebound in operating income position it as the fundamental winner. Investors seeking growth and momentum may find Truist’s profile more attractive.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of each company:
| Ratios | Truist Financial Corporation (TFC) | Citizens Financial Group, Inc. (CFG) |
|---|---|---|
| ROE | 8.14% | 6.96% |
| ROIC | 3.61% | 4.25% |
| P/E | 11.75 | 13.76 |
| P/B | 0.96 | 0.96 |
| Current Ratio | 0.87 | 1.04 |
| Quick Ratio | 0.87 | 1.04 |
| D/E | 1.07 | 0.43 |
| Debt-to-Assets | 12.75% | 4.98% |
| Interest Coverage | 0.63 | 0.61 |
| Asset Turnover | 0.056 | 0.049 |
| Fixed Asset Turnover | 9.60 | 12.18 |
| Payout ratio | 49.67% | 40.52% |
| Dividend yield | 4.23% | 2.94% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, unveiling hidden risks and operational strengths behind headline numbers.
Truist Financial Corporation
Truist shows a solid net margin of 17.44%, indicating efficient profit generation, but its ROE of 8.14% trails industry expectations. The P/E at 11.75 suggests fair valuation, and a 4.23% dividend yield rewards shareholders. However, a low current ratio of 0.87 signals liquidity concerns. Debt levels remain manageable but warrant attention.
Citizens Financial Group, Inc.
Citizens posts a slightly lower net margin at 16.42% and a weaker ROE of 6.96%, reflecting moderate profitability. Its P/E ratio of 13.76 marks a higher valuation, while a 2.94% dividend yield provides steady income. The current ratio of 1.04 implies better short-term liquidity. Citizens carries less debt, which supports financial stability.
Balanced Valuation Meets Operational Trade-Offs
Citizens offers a more favorable overall ratio profile with better liquidity and lower leverage, while Truist delivers stronger margins and higher dividends. Investors seeking income might lean toward Truist; those prioritizing financial stability may prefer Citizens. Both exhibit trade-offs between operational efficiency and valuation.
Which one offers the Superior Shareholder Reward?
I compare Truist Financial Corporation (TFC) and Citizens Financial Group, Inc. (CFG) on dividends and buybacks. TFC offers a higher dividend yield at 4.23% with a payout ratio near 50%, indicating solid free cash flow coverage. CFG yields 2.94% with a more conservative 40% payout, preserving cash for growth. Both maintain consistent dividends, but TFC’s dividend growth appears more robust. Regarding buybacks, TFC shows moderate share repurchase activity, while CFG’s buyback intensity is less pronounced, suggesting TFC returns more capital directly. I see TFC’s balanced approach—solid dividends plus buybacks—as more sustainable for long-term value. In 2026, TFC offers the superior total shareholder return profile given its stronger cash return and sustainable payout strategy.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Truist Financial Corporation and Citizens Financial Group, Inc.:
Both firms share strengths in discounted cash flow, ROE, and ROA, scoring 4 and 3 respectively. Truist holds a slight edge in valuation metrics, with a better price-to-earnings score (3 vs. 2). Both show moderate debt-to-equity scores (2), signaling similar leverage risk. Truist’s profile appears more balanced, while Citizens leans on a specific valuation discount.
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Bankruptcy Risk: Solvency Showdown
Both companies register Altman Z-Scores deep in the distress zone, signaling high bankruptcy risk amid current market pressures:
Truist’s score is 0.12, slightly below Citizens’ 0.28, but both fall well under the safe threshold of 3. This suggests severe solvency challenges. Investors must weigh this risk heavily in portfolio decisions.
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Financial Health: Quality of Operations
Truist and Citizens both score 7 on the Piotroski F-Score, indicating strong financial health with no glaring red flags:
This reflects solid internal metrics across profitability, leverage, and efficiency. Despite their bankruptcy risk, operational quality remains robust, offering a nuanced view for long-term investors.
How are the two companies positioned?
This section dissects the operational DNA of Truist Financial Corporation and Citizens Financial Group by comparing their revenue distribution and internal strengths and weaknesses. The goal is to confront their economic moats and reveal which business model offers the most resilient and sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how Truist Financial Corporation and Citizens Financial Group diversify their income streams and where their primary sector bets lie:
Truist Financial Corporation anchors its revenue heavily in Community Banking, generating around 153M in 2016, with Financial Services and minimal Residential Mortgage Banking contributions. This concentration signals potential exposure to sector-specific risks. Conversely, Citizens Financial Group displays a more diversified income mix, balancing Card Fees (362M) and Service Charges and Fees (417M) in 2024, reflecting a broader engagement across consumer financial services. CFG’s strategy mitigates concentration risk and leverages multiple fee-based revenue streams.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Truist Financial Corporation (TFC) and Citizens Financial Group, Inc. (CFG):
TFC Strengths
- Higher net margin at 17.44%
- Favorable P/E at 11.75
- Lower debt to assets at 12.75%
- Strong fixed asset turnover at 9.6
- Higher dividend yield at 4.23%
- Favorable PB at 0.96
CFG Strengths
- Favorable net margin at 16.42%
- Lower debt to equity at 0.43
- Favorable quick ratio at 1.04
- Strong fixed asset turnover at 12.18
- Favorable PB at 0.96
- More favorable global ratio profile
TFC Weaknesses
- Unfavorable ROE at 8.14% below WACC 9.11%
- Low current ratio at 0.87
- High debt to equity at 1.07
- Low interest coverage at 0.63
- Unfavorable asset turnover at 0.06
- Negative segment in Other Treasury & Corporate
CFG Weaknesses
- ROE at 6.96%, below WACC 14.07%
- Unfavorable WACC higher than ROIC
- Low interest coverage at 0.61
- Unfavorable asset turnover at 0.05
- Lower dividend yield at 2.94%
- Higher WACC signals higher capital cost
Overall, TFC shows strengths in profitability metrics like net margin and dividend yield but struggles with leverage and liquidity ratios. CFG demonstrates better leverage control and liquidity but faces challenges in capital cost and returns on invested capital. Both companies must address operational efficiency and capital allocation to enhance their strategic positioning.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable barrier protecting long-term profits from relentless competition erosion. Let’s dissect the moats of two regional banking giants:
Truist Financial Corporation (TFC): Cost Advantage in a Consolidated Market
Truist leverages scale and operational efficiency to sustain a cost advantage. Its stable gross margin near 62% reflects this strength. However, declining ROIC signals rising capital costs threaten its moat in 2026.
Citizens Financial Group, Inc. (CFG): Niche Market Focus and Relationship Banking
Citizens relies on customer intimacy and selective regional penetration, supporting a higher gross margin near 70%. Yet, its shrinking ROIC and value destruction warn of moat vulnerability despite promising revenue growth in selective segments.
Verdict: Scale Efficiency vs. Customer Intimacy
Both banks struggle with declining ROIC, eroding their moats. Truist’s broader cost advantage offers a wider protective barrier than Citizens’ niche focus. I believe Truist is better positioned to defend market share amid rising capital pressures.
Which stock offers better returns?
Over the past year, both Truist Financial Corporation and Citizens Financial Group, Inc. showed strong upward price movements with accelerating trends and notable highs near $51.42 and $62.98, respectively.
Trend Comparison
Truist Financial Corporation’s stock rose 37.34% over the past year, showing a bullish trend with accelerating momentum and a standard deviation of 4.03. Its price ranged from $34.79 to $51.42.
Citizens Financial Group, Inc. gained 83.51% over the same period, also bullish with acceleration. It experienced higher volatility, reflected by a standard deviation of 7.49, and traded between $33.14 and $62.98.
Citizens Financial’s stronger price appreciation and higher acceleration outperformed Truist Financial over the last year, delivering the highest market return among the two.
Target Prices
Analysts set a moderately bullish consensus for Truist Financial and Citizens Financial Group.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Truist Financial Corporation | 50 | 58 | 54.38 |
| Citizens Financial Group, Inc. | 60 | 80 | 69.46 |
The consensus target prices suggest upside potential of 5.7% for Truist and 10.3% for Citizens from current levels. Analysts expect both regional banks to outperform or at least keep pace with sector averages.
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How do institutions grade them?
Here is a summary of recent institutional grades for Truist Financial Corporation and Citizens Financial Group, Inc.:
Truist Financial Corporation Grades
The table below shows recent grades from recognized financial institutions for Truist Financial Corporation.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Argus Research | Maintain | Buy | 2026-01-23 |
| TD Cowen | Maintain | Buy | 2026-01-22 |
| Piper Sandler | Maintain | Neutral | 2026-01-22 |
| TD Cowen | Maintain | Buy | 2026-01-07 |
| Raymond James | Maintain | Outperform | 2026-01-07 |
| Evercore ISI Group | Upgrade | Outperform | 2026-01-06 |
| Barclays | Downgrade | Underweight | 2026-01-05 |
| Citigroup | Maintain | Buy | 2025-12-31 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-17 |
| Keefe, Bruyette & Woods | Maintain | Market Perform | 2025-12-17 |
Citizens Financial Group, Inc. Grades
The table below shows recent grades from recognized financial institutions for Citizens Financial Group, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Hold | 2026-01-26 |
| Citigroup | Maintain | Buy | 2026-01-26 |
| Argus Research | Maintain | Buy | 2026-01-23 |
| RBC Capital | Maintain | Outperform | 2026-01-22 |
| B of A Securities | Maintain | Buy | 2026-01-22 |
| Morgan Stanley | Maintain | Overweight | 2026-01-22 |
| Keefe, Bruyette & Woods | Maintain | Outperform | 2026-01-22 |
| DA Davidson | Maintain | Buy | 2026-01-22 |
| TD Cowen | Maintain | Buy | 2026-01-22 |
| Raymond James | Downgrade | Outperform | 2026-01-07 |
Which company has the best grades?
Citizens Financial Group holds a generally stronger profile with multiple “Buy” and “Outperform” ratings, including recent upgrades from top firms. Truist shows a wider range with some downgrades, reflecting mixed sentiment. Investors may view Citizens as having more consistent institutional confidence.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing Truist Financial Corporation and Citizens Financial Group in the 2026 market environment:
1. Market & Competition
Truist Financial Corporation (TFC)
- Operates mainly in Southeastern and Mid-Atlantic U.S., facing regional banking competition and market saturation.
Citizens Financial Group, Inc. (CFG)
- Operates in 14 states plus D.C., with broader geographic spread but intense competition in diverse markets.
2. Capital Structure & Debt
Truist Financial Corporation (TFC)
- Debt-to-equity ratio of 1.07 signals higher leverage and increased financial risk.
Citizens Financial Group, Inc. (CFG)
- Debt-to-equity ratio of 0.43 shows more conservative leverage and stronger balance sheet stability.
3. Stock Volatility
Truist Financial Corporation (TFC)
- Beta of 0.874 indicates less volatility than the market, suggesting defensive characteristics.
Citizens Financial Group, Inc. (CFG)
- Beta of 1.086 implies above-market volatility, reflecting higher risk and sensitivity to market swings.
4. Regulatory & Legal
Truist Financial Corporation (TFC)
- Subject to U.S. banking regulations, with complexity from insurance and investment services.
Citizens Financial Group, Inc. (CFG)
- Faces broad regulatory scrutiny across multiple states and commercial banking segments.
5. Supply Chain & Operations
Truist Financial Corporation (TFC)
- Large branch network (2,517 locations) increases operational complexity and fixed costs.
Citizens Financial Group, Inc. (CFG)
- Smaller branch footprint (approx. 1,200 branches) may reduce operational overhead but limit market penetration.
6. ESG & Climate Transition
Truist Financial Corporation (TFC)
- Exposed to climate risk through diverse loan portfolio including real estate and commercial lending.
Citizens Financial Group, Inc. (CFG)
- Faces transition risks in energy and commercial sectors, plus pressure on sustainable finance solutions.
7. Geopolitical Exposure
Truist Financial Corporation (TFC)
- Primarily U.S.-focused with minimal direct international geopolitical risk.
Citizens Financial Group, Inc. (CFG)
- Similar U.S.-centric exposure, but broader geographic branch distribution could increase regional risks.
Which company shows a better risk-adjusted profile?
The highest impact risk for Truist is its elevated leverage, heightening financial vulnerability amid tightening credit conditions. For Citizens, stock volatility and a higher weighted average cost of capital pose notable challenges. Citizens demonstrates a more favorable overall financial ratio profile and lower leverage, suggesting a stronger risk-adjusted position. Yet, both firms register distress-zone Altman Z-Scores, underscoring systemic sector risks. The improved debt metrics and controlled volatility tilt the risk balance in Citizens’ favor for 2026.
Final Verdict: Which stock to choose?
Truist Financial Corporation (TFC) stands out for its robust revenue growth and strong gross margins, showcasing operational muscle that drives value. Its main point of vigilance is the declining return on invested capital, signaling weakening efficiency in capital use. TFC suits investors pursuing aggressive growth with tolerance for some execution risk.
Citizens Financial Group (CFG) offers a strategic moat through disciplined capital management and a safer balance sheet, reflected by lower leverage and better liquidity ratios. While its revenue growth is less consistent, CFG provides a steadier profile compared to TFC. It fits well in a GARP (Growth at a Reasonable Price) portfolio seeking measured growth with defensive traits.
If you prioritize aggressive expansion and can accept a deteriorating capital efficiency, TFC is the compelling choice due to its operational scale and earnings momentum. However, if you seek better stability with a cleaner balance sheet and a more conservative risk profile, CFG offers superior financial health and a more attractive valuation backdrop. Both have challenges, so aligning your choice with your risk tolerance is essential.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Truist Financial Corporation and Citizens Financial Group, Inc. to enhance your investment decisions:
