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 2026-05-20.
Bank of America Corporation · Financial Services
$53.95
-41.2% upside to fair value
Grade C
VS
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
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 |
HD |
| Current Price |
$53.95 |
$302.44 |
| Fair Value Estimate |
$31.74 |
$369.00 |
| Upside to Fair Value |
-41.2%
|
+22.0%
|
| Market Cap |
$387.2B |
$301.2B |
| Forward P/E |
12.3x
|
20.5x
|
| EV / EBITDA |
12.7x
|
16.5x
|
| Price / Sales |
2.2x
|
2.0x
|
| Price / FCF |
30.7x
|
26.6x
|
| Revenue Growth YoY |
-35.6%
|
+4.8%
|
| Gross Margin |
63.2%
|
33.3%
|
| Operating Margin |
22.9%
|
12.7%
|
| Return on Equity |
10.5%
|
110.5%
|
| Dividend Yield |
0% |
2.72% |
| FCF Yield |
3.26%
|
3.75%
|
| 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…
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Accumulation Zones
| Metric |
BAC |
HD |
| Zone Low |
$23.80 |
$276.75 |
| Zone High |
$26.98 |
$313.65 |
| In Buy Zone? |
No
|
Yes
|