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Compare Stocks › BAC vs HRL

Bank of America Corporation (BAC) vs Hormel Foods Corporation (HRL)

BAC
Bank of America Corporation
$47.01
VS
HRL
Hormel Foods Corporation
$22.37

Rewards

BAC
  • ★Each dollar of retained earnings has created $2.37 of market value — management is an exceptional capital allocator.
  • ★PEG ratio of 0.58 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
HRL
  • ★Dividend yield of 5.23% with a consistent or growing payout over the past 4 years.
  • ★Altman Z-Score of 3.52 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

BAC
  • ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Bank of America Corporation scores only 20/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
  • ⚠Altman Z-Score of 0.22 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
HRL
  • ⚠Gross margin of 15.6% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠PEG ratio of 3.87 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Free cash flow has declined at a 14.5% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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BAC
HRL
Valuation
N/A
Free Cash Flow
$534.35M
N/A
FCF Yield
4.34%
12.34
Trailing P/E
25.13
9.49
Forward P/E
14.14
Quality & Moat
4.61%
ROIC
6.56%
N/A
ROE
6.01%
0.00%
Gross Margin
15.61%
0.58
PEG Ratio
3.87
Balance Sheet Safety
N/A
Debt / Equity
0.36
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
1.61
2.38%
Dividend Yield
5.23%
BAC: 3Ties: 1HRL: 3
BACHRL

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.

HRL

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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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
HRL
$-50.24
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$235.7M
Δ Market Cap
$-11.84B
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
64.3% Margin of Safety
Price is 64.3% below estimated fair value
Current Price: $47.01
Fair Value: $131.82
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
HRL
53.8% Overvalued
Price is 53.8% above estimated fair value
Current Price: $22.37
Fair Value: $14.55
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.

HRL

What growth rate is the market pricing in at $22?

+13.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +11.6%

The market implies +13.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +11.6%, reflecting heavy growth investment.

Economic Moat Score

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BAC
20/100
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.
HRL
50/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.

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.
HRL
-2.61
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 7.3%Institutions 71.2%Retail & Other 21.5%
No. of Institutional Holders4,445
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.
HRL
Insiders 0.5%Institutions 92.0%Retail & Other 7.5%
No. of Institutional Holders913
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
HRL
0
Buys (3M)
0
Buys (12M)
LYKKEN STEVEN J
Officer
$159,246
@ $32.47 · 2024-12-06
LOSNESS-LARSON KATHERINE M
Officer
$25,000
@ $30.12 · 2024-06-27
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
5
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
HRL
0
Sells (3M)
2
Sells (12M)
Total value (12M): $458,400
MURANO ELSA A
Director
$321,600
@ $24.00 · 2025-12-11
MURANO ELSA A
Director
$136,800
@ $30.40 · 2025-03-27
LYKKEN STEVEN J
Officer
$312,689
@ $31.91 · 2024-09-27
MYERS KEVIN L.
Officer
$327,000
@ $32.70 · 2024-09-18
BRADY DEANNA T
Officer
$1.65M
@ $31.95 · 2024-09-13
OURADA MARK J
Officer
$489,900
@ $35.50 · 2024-04-02
MURANO ELSA A
Director
$151,068
@ $35.13 · 2024-04-02
MYERS KEVIN L.
Officer
$349,500
@ $34.95 · 2024-03-28
COFFEY MARK A.
Officer
$539,055
@ $35.00 · 2024-03-28
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
😐Neutral(47/100)

"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.
HRL
FearGreed
😨Fear(29/100)

"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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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: Neutral (47)
HRL
⚪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 (29)
View BAC Full AnalysisView HRL Full Analysis