Star bank analyst Dick Bove, vice president at Rafferty Capital Markets, sees continued difficulties at JPMorgan Chase, but is more enthusiastic about Wells Fargo.

Both banks announced their earnings Tuesday. JPMorgan's profit fell 7 percent in the fourth quarter amid weaker investment banking revenue and rising legal costs.

The country's biggest bank paid $23 billion in legal settlements last year, and Bove believes the onslaught will continue.

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"I don't think it's anywhere close to ending its litigation, its fines, its lawsuits," he tells CNBC. "So I'm a little more cautious on this company."

Regulatory limits on trading could affect JPMorgan too, Bove predicts. "Will they sell the commodities business? Will they get out of student lending when they can't do proprietary trading?"

Meanwhile, Wells Fargo posted a 10 percent profit increase for the fourth quarter, helped by expense cuts.

"Revenues went up, expenses went down. How bad could that be?" he asks adding that the bank will report "record earnings" for 2014.

Investors frequently undervalue Wells Fargo, because they are unable to separate its core businesses from its housing market activity, Bove notes. The bank is the country's largest mortgage lender.

Not all analysts drew a negative conclusion from the JPMorgan earnings report.

"All things considered, it wasn't a bad quarter," Pri de Silva, senior banking analyst at CreditSights, tells Bloomberg. "They had something close to a kitchen-sink quarter getting some legal issues done."

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