CNBC’s “Squawk Box” co-anchor Andrew Ross Sorkin talked about banks and the financial sector Thursday with Pivotal Advisors Founder Tiffany McGhee and Douglas C. Lane & Associates Portfolio Manager Sarat Sethi.
Sorkin asked the pair, “If you could only buy one bank today, which would it be?”
“It’s a toss-up,” between JPMorgan Chase & Co (NYSE: JPM) and Goldman Sachs Group Inc (NYSE: GS), McGhee responded.
The two banks have diversified revenue and consistent dividends, she said. Trading revenue, asset management revenue and advisory revenue create multiple streams of income for the banks and neither bank cut its dividend last year during the COVID-19 pandemic, McGhee told CNBC. The two banks are staples in client portfolios, she added.
Sethi said he also liked JPMorgan, adding that the bank is the “gold standard.” However, the portfolio manager’s pick for the most upside over the next 2-3 years is Morgan Stanley (NYSE: MS).
The bank restructured its entire business, he said, with “asset management business is going to give them huge leverage.”
Related Link: Why Is This Analyst Bullish About Financial Sector Stocks?
Banks Report Earnings: JPMorgan reported EPS of $4.50 and revenue of $33.12 billion on Wednesday.
Goldman Sachs reported EPS of $18.60 and revenue of $17.7 billion on Wednesday.
Morgan Stanley is scheduled to report earnings on Friday.
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