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Compare Stocks › ALGN vs BAC

Align Technology, Inc. (ALGN) vs Bank of America Corporation (BAC)

ALGN
Align Technology, Inc.
$178.91
VS
BAC
Bank of America Corporation
$53.24

Rewards

ALGN
  • ★Align Technology, Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 70.5% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Align Technology, Inc. scores 91/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
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 0.54 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.

Risks

ALGN
  • ⚠Each dollar of retained earnings has produced only $0.42 of earning power — shareholders may have been better served by dividends.
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.
  • ⚠5 insider sales totaling $20.2M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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ALGN
BAC
Valuation
$584.22M
Free Cash Flow
N/A
4.56%
FCF Yield
N/A
30.02
Trailing P/E
13.24
14.48
Forward P/E
10.56
Quality & Moat
13.90%
ROIC
3.89%
9.89%
ROE
N/A
70.50%
Gross Margin
0.00%
1.26
PEG Ratio
0.54
Balance Sheet Safety
0.02
Debt / Equity
N/A
N/A
Interest Coverage
N/A
-1.08
Net Debt / EBITDA
N/A
N/A
Dividend Yield
2.10%
ALGN: 2Ties: 1BAC: 3
ALGNBAC

Historical Fundamentals

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ALGN

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

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.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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ALGN
$-4.04
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.28B
Δ Market Cap
$-5.15B
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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ALGN
23.2% Overvalued
Price is 23.2% above estimated fair value
Current Price: $178.91
Fair Value: $145.20
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BAC
59.1% Margin of Safety
Price is 59.1% below estimated fair value
Current Price: $53.24
Fair Value: $130.24
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ALGN

What growth rate is the market pricing in at $179?

+12.7%
Market-Implied Owner Earnings Growth
Standard FCF implies +7.9%

The market implies +12.7% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +7.9%, reflecting heavy growth investment.

BAC

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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ALGN
91/100
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 5 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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ALGN
-2.52
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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ALGN
Insiders 6.8%Institutions 97.4%
No. of Institutional Holders965
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 7.4%Institutions 71.5%Retail & Other 21.1%
No. of Institutional Holders4,375
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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ALGN
0
Buys (3M)
1
Buys (12M)
Total value (12M): $996,131
HOGAN JOSEPH M
Chief Executive Officer
$996,131
@ $131.49 · 2025-08-01
LARKIN CHARLES RAYMOND JR
Director
$1.53M
@ $235.33 · 2024-08-15
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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ALGN
1
Sells (3M)
1
Sells (12M)
Total value (12M): $1.51M
MORICI JOHN F.
Chief Financial Officer
$1.51M
@ $189.31 · 2026-02-18
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
BAC
5
Sells (3M)
5
Sells (12M)
Total value (12M): $20.17M
MENSAH BERNARD AMPONSAH
Officer
$4.41M
@ $46.94 · 2026-03-12
BRONSTEIN SHERI B
Officer
$2.99M
@ $49.91 · 2026-03-05
SCRIVENER THOMAS M
Officer
$2.49M
@ $49.82 · 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
MENSAH BERNARD AMPONSAH
Officer
$3.66M
@ $39.80 · 2024-08-27
HANS LINDSAY D
Officer
$402,410
@ $36.91 · 2024-08-05
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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ALGN
FearGreed
😐Neutral(50/100)

"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
😏Greed(64/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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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ALGN
⚪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 (50)
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: Greed (64)
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ALGN vs BAC: Which Is the Better Buy? | SafetyMargin.io