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 2026-04-20.
Bank of America Corporation · Financial Services
$53.95
-41.2% upside to fair value
Grade C
VS
Costco Wholesale Corporation · Consumer Defensive
$999.89
-20.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
COST has more upside to fair value
(-20.7%).
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 |
COST |
| Current Price |
$53.95 |
$999.89 |
| Fair Value Estimate |
$31.74 |
$793.02 |
| Upside to Fair Value |
-41.2%
|
-20.7%
|
| Market Cap |
$387.2B |
$443.6B |
| Forward P/E |
12.3x
|
51.9x
|
| EV / EBITDA |
12.7x
|
30.9x
|
| Price / Sales |
2.2x
|
1.6x
|
| Price / FCF |
30.7x
|
48.8x
|
| Revenue Growth YoY |
-35.6%
|
+9.2%
|
| Gross Margin |
63.2%
|
12.9%
|
| Operating Margin |
22.9%
|
3.8%
|
| Return on Equity |
10.5%
|
28.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.26%
|
2.05%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
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…
Costco Wholesale Corporation operates a global membership-based warehouse club model that leverages scale, low costs, and superior employee retention to deliver consistent revenue and earnings growth. The company reported $269.9 billion in net sales for fiscal 2025 with an 8% year-over-year increase, driven by strong segments in Foods and Sundries and membership fees exceeding $5.65 billion in th…
Accumulation Zones
| Metric |
BAC |
COST |
| Zone Low |
$23.80 |
$594.76 |
| Zone High |
$26.98 |
$674.07 |
| In Buy Zone? |
No
|
No
|