BAC vs HD: Which Is the Better Buy?
Side-by-side comparison of Bank of America Corporation and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Bank of America Corporation · Financial Services
$52.54
+7.3% upside to fair value
Grade B+
VS
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
HD has more upside to fair value
(+12.1%).
BAC trades at a lower forward P/E
(12.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
BAC |
HD |
| Current Price |
$52.54 |
$337.34 |
| Fair Value Estimate |
$56.39 |
$378.00 |
| Upside to Fair Value |
+7.3%
|
+12.1%
|
| Market Cap |
$377.1B |
$336.0B |
| Forward P/E |
12.1x
|
23.0x
|
| EV / EBITDA |
12.8x
|
18.1x
|
| Price / Sales |
2.0x
|
2.3x
|
| Price / FCF |
29.9x
|
29.7x
|
| Revenue Growth YoY |
-0.5%
|
+3.2%
|
| Gross Margin |
56.1%
|
33.3%
|
| Operating Margin |
19.7%
|
12.7%
|
| Return on Equity |
10.1%
|
110.5%
|
| Dividend Yield |
2.09% |
2.44% |
| FCF Yield |
3.35%
|
3.37%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Bank of America is a top-two U.S. bank by assets with $3.4 trillion on its balance sheet, generating $30.5 billion in net income in 2025 on the back of 12.5% earnings growth. The bank benefits from scale in consumer deposits, a recovering investment banking franchise, and an expanding digital platform serving 47 million active users. At 12.7x trailing earnings and 1.97x sales, BAC trades at a fai…
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
Accumulation Zones
| Metric |
BAC |
HD |
| Zone Low |
$42.29 |
$285.00 |
| Zone High |
$47.93 |
$320.00 |
| In Buy Zone? |
No
|
No
|