WallStSmart

Bank of America Corp (BAC)vsWells Fargo & Company (WFC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Bank of America Corp generates 34% more annual revenue ($107.42B vs $80.04B). BAC leads profitability with a 28.4% profit margin vs 26.7%. BAC appears more attractively valued with a PEG of 0.88. BAC earns a higher WallStSmart Score of 80/100 (B+).

BAC

Strong Buy

80

out of 100

Grade: B+

Growth: 8.0Profit: 9.0Value: 10.0Quality: 5.0
Piotroski: 5/9Altman Z: -0.27

WFC

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 10.0Quality: 5.8
Piotroski: 4/9Altman Z: 0.43
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BACUndervalued (+69.7%)

Margin of Safety

+69.7%

Fair Value

$155.14

Current Price

$46.83

$108.31 discount

UndervaluedFair: $155.14Overvalued
WFCUndervalued (+56.0%)

Margin of Safety

+56.0%

Fair Value

$173.78

Current Price

$76.19

$97.59 discount

UndervaluedFair: $173.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BAC6 strengths · Avg: 9.2/10
Market CapQuality
$343.66B10/10

Mega-cap, among the largest globally

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
41.6%10/10

Strong operational efficiency at 41.6%

Profit MarginProfitability
28.4%9/10

Keeps 28 of every $100 in revenue as profit

PEG RatioValuation
0.888/10

Growing faster than its price suggests

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

WFC6 strengths · Avg: 8.8/10
Market CapQuality
$237.79B10/10

Mega-cap, among the largest globally

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

Free Cash FlowQuality
$4.12B8/10

Generating 4.1B in free cash flow

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

WFC2 concerns · Avg: 3.0/10
PEG RatioValuation
1.584/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.432/10

Distress zone — elevated risk

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 28.4% and operating margin at 41.6%. PEG of 0.88 suggests the stock is reasonably priced for its growth.

Bull Case : WFC

The strongest argument for WFC centers on Market Cap, Price/Book, Profit Margin. Profitability is solid with margins at 26.7% and operating margin at 29.9%.

Bear Case : BAC

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

Bear Case : WFC

The primary concerns for WFC are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

BAC profiles as a mature stock while WFC is a value play — different risk/reward profiles.

BAC carries more volatility with a beta of 1.26 — expect wider price swings.

BAC is growing revenue faster at 7.2% — sustainability is the question.

WFC generates stronger free cash flow (4.1B), providing more financial flexibility.

Bottom Line

BAC scores higher overall (80/100 vs 72/100), backed by strong 28.4% margins. WFC offers better value entry with a 56.0% margin of safety. 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.

Wells Fargo & Company

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.

Want to dig deeper into these stocks?