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Accenture plc (ACN) vs Bank of America Corporation (BAC): Which Is the Better Buy in 2026?

As of 2026-11-01, ACN is fairly valued at $258, with a DCF intrinsic value of $322 and a margin of safety of 20%. BAC is undervalued at $50, with an intrinsic value of $180 and a margin of safety of 72%. Of the two, BAC has the wider margin of safety.

ACN
Accenture plc
$258.24
VS
BAC
Bank of America Corporation
$50.01

Rewards

ACN
  • ★Accenture plc has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Accenture plc scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
BAC
  • ★Bank of America Corporation scores 100/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★PEG ratio of 0.91 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.

Risks

ACN
  • ⚠FCF yield of 6.8% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 2.45 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
BAC
  • ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Altman Z-Score of 0.22 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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ACN
BAC
Valuation
$10.68B
Free Cash Flow
N/A
6.76%
FCF Yield
N/A
19.04
Trailing P/E
11.94
16.25
Forward P/E
9.64
Quality & Moat
22.39%
ROIC
3.80%
26.02%
ROE
10.73%
32.05%
Gross Margin
0.00%
2.45
PEG Ratio
0.91
Balance Sheet Safety
0.02
Net Debt / Equity
N/A
N/A
Interest Coverage
N/A
0.04
Net Debt / EBITDA
N/A
2.65%
Dividend Yield
2.56%
ACN: 3Ties: 2BAC: 3
ACNBAC

Historical Fundamentals

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ACN

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

BAC

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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ACN
$-4.98
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$12.38B
Δ Market Cap
$-61.69B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
BAC
$2.37
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$55.63B
Δ Market Cap
+$131.83B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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ACN
19.7% Margin of Safety
Price is 19.7% below estimated fair value
Current Price: $258.24
Fair Value: $321.71
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BAC
72.2% Margin of Safety
Price is 72.2% below estimated fair value
Current Price: $50.01
Fair Value: $180.08
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ACN

What growth rate is the market pricing in at $258?

+6.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +3.6%

The market implies +6.2% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +3.6%, reflecting ongoing growth investment.

BAC

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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ACN
90/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
BAC
100/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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ACN
-2.78
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
BAC
-2.31
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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ACN
Insiders 0.0%Institutions 85.1%Retail & Other 14.9%
No. of Institutional Holders2,797
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
BAC
Insiders 7.1%Institutions 71.9%Retail & Other 21.0%
No. of Institutional Holders4,517
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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ACN
2
Buys (3M)
2
Buys (12M)
Total value (12M): $3.20M
PRICE PAULA A
Director
$199,848
@ $249.81 · 2026-10-26
SWEET JULIE SPELLMAN
Chief Executive Officer
$3.00M
@ $245.99 · 2026-10-26
Open market purchases · includes direct & indirect ownership · excludes option exercises
BAC
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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ACN
3
Sells (3M)
8
Sells (12M)
Total value (12M): $5.85M
SEKIDO RYOJI
Officer
$1.43M
@ $244.84 · 2026-10-22
BURGUM MELISSA A
Officer
$202,750
@ $250.00 · 2026-10-22
HOGAN CATHERINE KIERNAN
Chief Operating Officer
$149,965
@ $214.24 · 2026-10-12
UNRUCH JOEL SCOTT
General Counsel
$1.71M
@ $162.98 · 2026-07-30
EGAWA ATSUSHI
Officer
$863,044
@ $177.14 · 2026-04-30
SWEET JULIE SPELLMAN
Chief Executive Officer
$1.46M
@ $241.23 · 2026-02-10
WALSH JOHN F
Officer
$3,389
@ $242.07 · 2026-02-04
SHARMA MANISH
Officer
$24,535
@ $250.36 · 2026-02-03
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
BAC
0
Sells (3M)
5
Sells (12M)
Total value (12M): $20.17M
MENSAH BERNARD AMPONSAH
Officer
$4.41M
@ $46.94 · 2026-03-12
SCRIVENER THOMAS M
Officer
$2.49M
@ $49.82 · 2026-03-05
BRONSTEIN SHERI B
Officer
$2.99M
@ $49.91 · 2026-03-05
ATHANASIA DEAN C
President
$6.86M
@ $50.21 · 2026-03-03
BORTHWICK ALASTAIR M.
Chief Financial Officer
$3.42M
@ $50.24 · 2026-02-27
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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ACN
FearGreed
😐Neutral(60/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
BAC
FearGreed
😨Fear(39/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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ACN
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (60)
BAC
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (39)
View ACN Full AnalysisView BAC Full Analysis

Frequently Asked Questions: ACN vs BAC

Is Accenture plc or Bank of America Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, BAC trades at a 72.2% margin of safety (intrinsic value $180 vs. price $50), compared to ACN's 19.7% margin of safety (intrinsic $322 vs. $258).

Which stock has a wider economic moat, Accenture plc or Bank of America Corporation?▼

BAC scores 100/100 (Wide moat), while ACN scores 90/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Bank of America Corporation in financial distress?▼

BAC's Altman Z-Score of 0.2 places it in the Distress zone, signaling elevated bankruptcy risk. ACN scores 4.5 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Accenture plc or Bank of America Corporation?▼

ACN earns 22.4% ROIC versus BAC's 3.8%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Accenture plc's or Bank of America Corporation's?▼

ACN's dividend earns a safety score of 94/100 (Very Safe), compared to BAC's 79/100 (Safe). ACN has raised its dividend for 3 consecutive years.

ACN vs BAC: Which Is the Better Buy in 2026? | SafetyMargin.io