BAC vs CAT: Which Is the Better Buy?
Side-by-side comparison of Bank of America Corporation and Caterpillar Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-13.
Bank of America Corporation · Financial Services
$53.95
-41.2% upside to fair value
Grade C
VS
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
QuantHub Verdict
BAC has more upside to fair value
(-41.2%).
BAC trades at a lower forward P/E
(12.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
BAC |
CAT |
| Current Price |
$53.95 |
$912.14 |
| Fair Value Estimate |
$31.74 |
$475.00 |
| Upside to Fair Value |
-41.2%
|
-47.9%
|
| Market Cap |
$387.2B |
$420.2B |
| Forward P/E |
12.3x
|
44.9x
|
| EV / EBITDA |
12.7x
|
30.0x
|
| Price / Sales |
2.2x
|
5.9x
|
| Price / FCF |
30.7x
|
36.7x
|
| Revenue Growth YoY |
-35.6%
|
+22.2%
|
| Gross Margin |
63.2%
|
32.5%
|
| Operating Margin |
22.9%
|
16.6%
|
| Return on Equity |
10.5%
|
47.5%
|
| Dividend Yield |
0% |
1.5% |
| FCF Yield |
3.26%
|
2.73%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Bank of America Corporation is a leading diversified bank with $3.41 trillion in assets and a broad footprint across consumer banking, global markets, wealth management, and corporate banking. The company benefits from a strong market position and experienced leadership under CEO Brian T. Moynihan. However, the stock is currently overvalued, trading approximately 36% above its fair value estimate…
Caterpillar is the world's leading manufacturer of construction and mining equipment, with diversified revenue across Construction Industries, Resource Industries, Energy & Transportation, and Cat Financial. Q1 2026 results reported April 30 showed revenue of $17.4 billion (+22.2% YoY) and EPS of $5.50 (+30.3% YoY), driven by powerful demand from data center build-outs (large engine and power gen…
Accumulation Zones
| Metric |
BAC |
CAT |
| Zone Low |
$23.80 |
$356.00 |
| Zone High |
$26.98 |
$404.00 |
| In Buy Zone? |
No
|
No
|