WallStSmart

Bank of America Corp (BAC)vsMoodys Corporation (MCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Bank of America Corp generates 1292% more annual revenue ($107.42B vs $7.72B). MCO leads profitability with a 31.9% profit margin vs 28.4%. BAC appears more attractively valued with a PEG of 0.89. BAC earns a higher WallStSmart Score of 80/100 (B+).

BAC

Strong Buy

80

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 10.0Quality: 5.0
Piotroski: 5/9Altman Z: -0.27

MCO

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.99
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BACUndervalued (+68.6%)

Margin of Safety

+68.6%

Fair Value

$155.14

Current Price

$48.75

$106.39 discount

UndervaluedFair: $155.14Overvalued
MCOUndervalued (+33.1%)

Margin of Safety

+33.1%

Fair Value

$639.76

Current Price

$428.05

$211.71 discount

UndervaluedFair: $639.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BAC6 strengths · Avg: 9.2/10
Market CapQuality
$351.54B10/10

Mega-cap, among the largest globally

Price/BookValuation
1.3x10/10

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
0.898/10

Growing faster than its price suggests

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

MCO5 strengths · Avg: 9.8/10
Return on EquityProfitability
62.1%10/10

Every $100 of equity generates 62 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
42.1%10/10

Strong operational efficiency at 42.1%

EPS GrowthGrowth
57.6%10/10

Earnings expanding 57.6% YoY

Market CapQuality
$76.27B9/10

Large-cap with strong market position

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

MCO3 concerns · Avg: 4.0/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
18.7x4/10

Trading at 18.7x book value

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 0.89 suggests the stock is reasonably priced for its growth.

Bull Case : MCO

The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 42.1%. Revenue growth of 13.0% demonstrates continued momentum.

Bear Case : BAC

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

Bear Case : MCO

The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

MCO carries more volatility with a beta of 1.44 — expect wider price swings.

MCO is growing revenue faster at 13.0% — sustainability is the question.

MCO generates stronger free cash flow (777M), providing more financial flexibility.

Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BAC scores higher overall (80/100 vs 71/100), backed by strong 28.4% margins. MCO offers better value entry with a 33.1% 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.

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Moodys Corporation

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.

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