BAC vs HON: Which Is the Better Buy?
Side-by-side comparison of Bank of America Corporation and Honeywell International Inc. โ fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Bank of America Corporation ยท Financial Services
$52.54
+7.3% upside to fair value
Grade B+
VS
Honeywell International Inc. ยท Industrials
$235.04
-9.9% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
BAC has more upside to fair value
(+7.3%).
BAC trades at a lower forward P/E
(12.1x).
These are model outputs โ not personalized investment advice.
See all research โ
Valuation & Fundamentals
| Metric |
BAC |
HON |
| Current Price |
$52.54 |
$235.04 |
| Fair Value Estimate |
$56.39 |
$211.73 |
| Upside to Fair Value |
+7.3%
|
-9.9%
|
| Market Cap |
$377.1B |
$149.4B |
| Forward P/E |
12.1x
|
22.3x
|
| EV / EBITDA |
12.8x
|
16.9x
|
| Price / Sales |
2.0x
|
4.0x
|
| Price / FCF |
29.9x
|
27.7x
|
| Revenue Growth YoY |
-0.5%
|
-2.7%
|
| Gross Margin |
56.1%
|
36.9%
|
| Operating Margin |
19.7%
|
17.7%
|
| Return on Equity |
10.1%
|
33.28%
|
| Dividend Yield |
2.09% |
1.92% |
| FCF Yield |
3.35%
|
3.61%
|
| 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 faiโฆ
Honeywell is a diversified industrial conglomerate in the final stages of a transformative three-way separation into Honeywell Aerospace, Solstice Advanced Materials, and a retained Automation entity, targeting Q3 2026 completion. The business generated 33% ROE and $5.4B in free cash flow on $37.4B revenue in FY2025, supported by a record $37B backlog with 23% organic order growth in Q4. At $235 โฆ
Accumulation Zones
| Metric |
BAC |
HON |
| Zone Low |
$42.29 |
$158.80 |
| Zone High |
$47.93 |
$179.97 |
| In Buy Zone? |
No
|
No
|