BAC vs COST: Which Is the Better Buy?
Side-by-side comparison of Bank of America Corporation and Costco Wholesale Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-14.
Bank of America Corporation · Financial Services
$59.50
-45.0% upside to fair value
Grade C
VS
Costco Wholesale Corporation · Consumer Defensive
$947.50
-1.4% upside to fair value
Grade C
High Quality
QuantHub Verdict
COST has more upside to fair value
(-1.4%).
BAC trades at a lower forward P/E
(14.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
BAC |
COST |
| Current Price |
$59.50 |
$947.50 |
| Fair Value Estimate |
$32.73 |
$933.84 |
| Upside to Fair Value |
-45.0%
|
-1.4%
|
| Market Cap |
$422.2B |
$420.2B |
| Forward P/E |
14.6x
|
47.6x
|
| EV / EBITDA |
13.3x
|
28.3x
|
| Price / Sales |
2.4x
|
1.4x
|
| Price / FCF |
7.5x
|
47.7x
|
| Revenue Growth YoY |
-35.6%
|
+11.6%
|
| Gross Margin |
63.2%
|
12.9%
|
| Operating Margin |
22.9%
|
3.8%
|
| Return on Equity |
10.5%
|
28.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
13.4%
|
2.1%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Bank of America Corporation operates as a diversified bank within the financial services sector, offering a broad range of banking and financial products. The business quality is medium, supported by a 10.5% return on equity and solid margins, but recent revenue declined sharply by 35.6% in the most recent quarter, indicating top-line pressure. Despite earnings growth of 16.1% in the same period,…
Costco Wholesale Corporation operates as a membership-only warehouse club offering a wide range of merchandise at low prices. The company exhibits high business quality with a durable competitive moat driven by cost advantages, strong brand loyalty, and efficient operations, reflected in a robust ROE of 28.3% and solid revenue growth of 11.6% in the most recent quarter. Despite these strengths, t…
Accumulation Zones
| Metric |
BAC |
COST |
| Zone Low |
$24.55 |
$700.38 |
| Zone High |
$27.82 |
$793.76 |
| In Buy Zone? |
No
|
No
|