BAC vs HD: Which Is the Better Buy?
Side-by-side comparison of Bank of America Corporation and The Home Depot, Inc. โ fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-14.
Bank of America Corporation ยท Financial Services
$59.50
-45.0% upside to fair value
Grade C
VS
The Home Depot, Inc. ยท Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
QuantHub Verdict
HD has more upside to fair value
(+34.6%).
BAC trades at a lower forward P/E
(14.6x).
These are model outputs โ not personalized investment advice.
See all research โ
Valuation & Fundamentals
| Metric |
BAC |
HD |
| Current Price |
$59.50 |
$343.30 |
| Fair Value Estimate |
$32.73 |
$462.14 |
| Upside to Fair Value |
-45.0%
|
+34.6%
|
| Market Cap |
$422.2B |
$342.3B |
| Forward P/E |
14.6x
|
24.3x
|
| EV / EBITDA |
13.3x
|
16.5x
|
| Price / Sales |
2.4x
|
2.0x
|
| Price / FCF |
7.5x
|
23.9x
|
| Revenue Growth YoY |
-35.6%
|
+4.8%
|
| Gross Margin |
63.2%
|
33.1%
|
| Operating Margin |
22.9%
|
12.4%
|
| Return on Equity |
10.5%
|
113.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
13.4%
|
4.18%
|
| 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,โฆ
The Home Depot, Inc. operates as a leading home improvement retailer in the consumer cyclical sector, leveraging a strong brand and cost advantages to maintain a durable competitive moat. Despite a modest revenue growth of 4.8% and a decline in earnings by 4.2% in the most recent quarter, the company exhibits exceptional profitability metrics including a 113.3% return on equity and solid margins โฆ
Accumulation Zones
| Metric |
BAC |
HD |
| Zone Low |
$24.55 |
$346.61 |
| Zone High |
$27.82 |
$392.82 |
| In Buy Zone? |
No
|
Yes
|