Is Capital One Financial the Best Bank Stock for You?

Banks are vital financial institutions that facilitate commerce, but not all banks are created equally. Capital One Financial (NYSE: COF), for example, has a unique operating model that can result in material swings in its performance. Here's why some investors will appreciate this large bank and others will want to avoid it.From a simplistic perspective, banks take in deposits (bank and checking accounts) and then use that cash to make loans (mortgages). Banks make the difference between the interest they charge on loans and the interest they pay on deposits. Although large banks have expanded well beyond this simple model today, it is still the core of many of the biggest names in the industry. Capital One does this, too, and regular banking is generally a fairly consistent, and perhaps even boring, business.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool