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
BAC โ€” Bank of America Corporation
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,โ€ฆ
HD โ€” The Home Depot, Inc.
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 โ€ฆ
Accumulation Zones
Metric BAC HD
Zone Low $24.55 $346.61
Zone High $27.82 $392.82
In Buy Zone? No Yes
โ† BAC Research    HD Research โ†’    All Research