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Bank of America Corporation (BAC) vs Edison International (EIX): Which Is the Better Buy in 2026?

As of 2026-08-03, BAC is undervalued at $62, with a DCF intrinsic value of $966181785898 and a margin of safety of 100%. EIX is undervalued at $73, with an intrinsic value of $128 and a margin of safety of 43%. Of the two, BAC has the wider margin of safety.

BAC
Bank of America Corporation
$61.95
VS
EIX
Edison International
$73.37

Rewards

BAC
  • ★Bank of America Corporation scores 100/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
EIX
  • ★Gross margin of 61.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Each dollar of retained earnings has created $11.43 of earning power — management is an exceptional capital allocator.
  • ★Management has timed buybacks well — 3 out of 3 years showed value-accretive repurchases.

Risks

BAC
  • ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Altman Z-Score of 0.14 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
EIX
  • ⚠Edison International scores only 27/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
  • ⚠Despite buyback spending, shares outstanding increased in 3 out of 3 years — share issuance is offsetting repurchases.
  • ⚠FCF yield of 0.3% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.

Key Valuation Metrics

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BAC
EIX
Valuation
N/A
Free Cash Flow
$82.38M
N/A
FCF Yield
0.29%
14.31
Trailing P/E
7.57
11.74
Forward P/E
11.28
Quality & Moat
4.37%
ROIC
6.59%
11.20%
ROE
19.73%
0.00%
Gross Margin
61.00%
1.06
PEG Ratio
3.46
Balance Sheet Safety
N/A
Net Debt / Equity
2.27
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
4.85
2.07%
Dividend Yield
4.78%
BAC: 1Ties: 2EIX: 5
BACEIX

Historical Fundamentals

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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.

EIX

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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BAC
$0.00
created per $1 retained over 3 years
Value Destroyer
Σ Retained
$55.63B
Δ Market Cap
+$21.88
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
EIX
$-0.32
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$3.77B
Δ Market Cap
$-1.22B
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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BAC
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $61.95
Fair Value: $966181785897.97
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
EIX
42.5% Margin of Safety
Price is 42.5% below estimated fair value
Current Price: $73.37
Fair Value: $127.63
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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BAC

Requires positive FCF to compute implied growth rate.

EIX

What growth rate is the market pricing in at $73?

+4.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +60.0%

The market implies +4.0% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +60.0%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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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.
EIX
27/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

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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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.
EIX
-2.70
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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BAC
Insiders 7.4%Institutions 71.4%Retail & Other 21.1%
No. of Institutional Holders4,431
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.
EIX
Insiders 0.3%Institutions 94.8%Retail & Other 5.0%
No. of Institutional Holders1,478
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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BAC
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
EIX
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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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
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
EIX
1
Sells (3M)
7
Sells (12M)
Total value (12M): $1.47M
TAYLOR PETER J
Director
$37,700
@ $75.40 · 2026-07-13
TAYLOR PETER J
Director
$37,650
@ $75.30 · 2026-04-13
TAYLOR PETER J
Director
$37,270
@ $74.54 · 2026-03-02
ANDERSON JILL CHARLOTTE
Officer
$514,088
@ $74.67 · 2026-03-02
BOWMAN ERICA S
Officer
$94,264
@ $73.87 · 2026-02-23
TAYLOR PETER J
Director
$99,486
@ $55.27 · 2025-10-30
MURPHY J ANDREW
Officer
$647,560
@ $54.42 · 2025-08-04
BELIVEAU-DUNN JEANNE
Director
$178,666
@ $54.34 · 2025-03-06
TAYLOR PETER J
Director
$104,100
@ $83.28 · 2024-11-15
UMANOFF ADAM S
General Counsel
$2.13M
@ $83.05 · 2024-10-31
MURPHY J ANDREW
Officer
$2.04M
@ $85.45 · 2024-08-26
MURPHY J ANDREW
Officer
$115,770
@ $85.00 · 2024-08-23
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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BAC
FearGreed
😏Greed(72/100)

"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.
EIX
FearGreed
😐Neutral(53/100)

"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.

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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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 (72)
EIX
⚪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 (53)
View BAC Full AnalysisView EIX Full Analysis

Frequently Asked Questions: BAC vs EIX

Is Bank of America Corporation or Edison International more undervalued in 2026?▼

Based on our discounted cash flow model, BAC trades at a 100.0% margin of safety (intrinsic value $966181785898 vs. price $62), compared to EIX's 42.5% margin of safety (intrinsic $128 vs. $73).

Which stock has a wider economic moat, Bank of America Corporation or Edison International?▼

BAC scores 100/100 (Wide moat), while EIX scores 27/100 (None 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 0.1 places it in the Distress zone, signaling elevated bankruptcy risk. EIX scores 0.7 (Distress 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, Bank of America Corporation or Edison International?▼

EIX earns 6.6% ROIC versus BAC's 4.4%. 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, Bank of America Corporation's or Edison International's?▼

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

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