WallStSmart

Bank of America Corp (BAC)vsMastercard Inc (MA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Bank of America Corp generates 223% more annual revenue ($109.59B vs $33.94B). MA leads profitability with a 45.9% profit margin vs 29.0%. BAC appears more attractively valued with a PEG of 0.95. BAC earns a higher WallStSmart Score of 80/100 (B+).

BAC

Strong Buy

80

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 7.0Quality: 3.5
Piotroski: 5/9Altman Z: -0.27

MA

Strong Buy

70

out of 100

Grade: B

Growth: 8.0Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 4.08

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BAC6 strengths · Avg: 9.5/10
Market CapQuality
$374.35B10/10

Mega-cap, among the largest globally

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Free Cash FlowQuality
$41.77B10/10

Generating 41.8B in free cash flow

Profit MarginProfitability
29.0%9/10

Keeps 29 of every $100 in revenue as profit

PEG RatioValuation
0.958/10

Growing faster than its price suggests

MA6 strengths · Avg: 9.7/10
Market CapQuality
$442.62B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
232.1%10/10

Every $100 of equity generates 232 in profit

Profit MarginProfitability
45.9%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
60.8%10/10

Strong operational efficiency at 60.8%

Altman Z-ScoreHealth
4.0810/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
15.8%8/10

15.8% revenue growth

Areas to Watch

BAC2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.213/10

Elevated debt levels

Altman Z-ScoreHealth
-0.272/10

Distress zone — elevated risk

MA4 concerns · Avg: 2.8/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

P/E RatioValuation
29.0x4/10

Moderate valuation

Price/BookValuation
57.3x2/10

Trading at 57.3x book value

Debt/EquityHealth
2.451/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BAC

The strongest argument for BAC centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 29.0% and operating margin at 36.0%. PEG of 0.95 suggests the stock is reasonably priced for its growth.

Bull Case : MA

The strongest argument for MA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.9% and operating margin at 60.8%. Revenue growth of 15.8% demonstrates continued momentum.

Bear Case : BAC

The primary concerns for BAC are Debt/Equity, Altman Z-Score.

Bear Case : MA

The primary concerns for MA are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.45 is elevated, increasing financial risk.

Key Dynamics to Monitor

BAC profiles as a mature stock while MA is a growth play — different risk/reward profiles.

BAC carries more volatility with a beta of 1.22 — expect wider price swings.

MA is growing revenue faster at 15.8% — sustainability is the question.

BAC generates stronger free cash flow (41.8B), providing more financial flexibility.

Bottom Line

BAC scores higher overall (80/100 vs 70/100), backed by strong 29.0% margins. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Bank of America Corp

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

The Bank of America Corporation is an American multinational investment bank and financial services holding company headquartered in Charlotte, North Carolina. Founded in San Francisco, Bank of America was formed through NationsBank's acquisition of BankAmerica in 1998. It is the second largest banking institution in the United States, after JPMorgan Chase, and the eighth largest bank in the world. Bank of America is one of the Big Four banking institutions of the United States. It services approximately 10 percent of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup and Wells Fargo. Its primary financial services revolve around commercial banking, wealth management, and investment banking.

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Mastercard Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.

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