WallStSmart

Bank of America Corp (BAC)vsStellus Capital Investment (SCM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Bank of America Corp generates 107195% more annual revenue ($109.59B vs $102.14M). BAC leads profitability with a 29.0% profit margin vs 26.5%. SCM trades at a lower P/E of 10.1x. BAC earns a higher WallStSmart Score of 82/100 (A-).

BAC

Exceptional Buy

82

out of 100

Grade: A-

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

SCM

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 7.5Value: 6.7Quality: 4.8
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BAC6 strengths · Avg: 9.2/10
Market CapQuality
$377.03B10/10

Mega-cap, among the largest globally

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
29.0%9/10

Keeps 29 of every $100 in revenue as profit

PEG RatioValuation
0.948/10

Growing faster than its price suggests

P/E RatioValuation
13.2x8/10

Attractively priced relative to earnings

SCM4 strengths · Avg: 9.8/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Operating MarginProfitability
56.6%10/10

Strong operational efficiency at 56.6%

Profit MarginProfitability
26.5%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

BAC3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.213/10

Elevated debt levels

Free Cash FlowQuality
$-22.95B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.272/10

Distress zone — elevated risk

SCM4 concerns · Avg: 3.0/10
Market CapQuality
$276.74M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Debt/EquityHealth
1.673/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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%. Revenue growth of 11.8% demonstrates continued momentum.

Bull Case : SCM

The strongest argument for SCM centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.5% and operating margin at 56.6%.

Bear Case : BAC

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

Bear Case : SCM

The primary concerns for SCM are Market Cap, Return on Equity, Debt/Equity. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

BAC profiles as a mature stock while SCM is a declining play — different risk/reward profiles.

BAC carries more volatility with a beta of 1.24 — expect wider price swings.

BAC is growing revenue faster at 11.8% — sustainability is the question.

SCM generates stronger free cash flow (7M), providing more financial flexibility.

Bottom Line

BAC scores higher overall (82/100 vs 47/100), backed by strong 29.0% margins and 11.8% revenue growth. Both earn "Exceptional Buy" and "Hold" 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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Stellus Capital Investment

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Stellus Capital Investment Corporation (SCM) is a distinguished business development company that specializes in providing customized debt and equity financing solutions to private middle-market enterprises. With a robust investment management framework, Stellus strives to deliver attractive risk-adjusted returns while prioritizing capital preservation for its shareholders. Its diversified portfolio encompasses senior secured loans, subordinated debt, and equity investments across a variety of sectors, enabling it to capitalize on evolving market opportunities. Committed to consistent income generation and prudent risk management, Stellus presents a compelling investment avenue for institutional investors looking for resilience in their strategies.

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