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Bank of America Corporation (BAC) vs KKR & Co. Inc. (KKR): Which Is the Better Buy in 2026?

As of 2026-11-01, BAC is undervalued at $50, with a DCF intrinsic value of $180 and a margin of safety of 72%. KKR is overvalued at $94, with an intrinsic value of $0 and a margin of safety of -100%. Of the two, BAC has the wider margin of safety.

BAC
Bank of America Corporation
$50.01
VS
KKR
KKR & Co. Inc.
$94.39

Rewards

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.
KKR
  • ★Each dollar of retained earnings has created $8.79 of earning power — management is an exceptional capital allocator.
  • ★8 insider purchases over the past 12 months with a buy/sell ratio above 3:1 — a sustained pattern of insider confidence.
  • ★PEG ratio of 0.40 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.

Risks

BAC
  • ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Altman Z-Score of 0.22 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
KKR
  • ⚠KKR & Co. Inc. scores only 24/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
  • ⚠Despite buyback spending, shares outstanding increased in 2 out of 3 years — stock-based compensation is offsetting repurchases.
  • ⚠Altman Z-Score of 0.85 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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BAC
KKR
Valuation
N/A
Free Cash Flow
N/A
N/A
FCF Yield
N/A
11.94
Trailing P/E
30.16
9.64
Forward P/E
13.13
Quality & Moat
3.80%
ROIC
3.08%
10.73%
ROE
7.28%
0.00%
Gross Margin
54.77%
0.91
PEG Ratio
0.40
Balance Sheet Safety
N/A
Net Debt / Equity
0.11
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
N/A
2.56%
Dividend Yield
0.83%
BAC: 5Ties: 1KKR: 2
BACKKR

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.

KKR

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
$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
KKR
$10.26
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$7.18B
Δ Market Cap
+$73.67B
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
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
KKR
Insufficient Data
Enter initial FCF to calculate intrinsic value
Current Price: $94.39
Fair Value: $0.00
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.

KKR

Requires positive FCF to compute implied growth rate.

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.
KKR
24/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency 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.
KKR
-2.50
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 7.1%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.
KKR
Insiders 23.0%Institutions 62.3%Retail & Other 14.7%
No. of Institutional Holders1,732
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
KKR
0
Buys (3M)
8
Buys (12M)
Total value (12M): $50.93M
BARAKETT TIMOTHY R.
Director
$4.72M
@ $94.47 · 2026-03-04
DILLON MARY N
Director
$2.02M
@ $90.96 · 2026-03-02
BAE JOSEPH Y
Chief Executive Officer
$4.43M
@ $88.56 · 2026-02-27
NUTTALL SCOTT C
Chief Executive Officer
$4.39M
@ $87.81 · 2026-02-27
BAE JOSEPH Y
Chief Executive Officer
$12.77M
@ $102.19 · 2026-02-17
NUTTALL SCOTT C
Chief Executive Officer
$12.83M
@ $102.66 · 2026-02-17
COHLER MATTHEW R
Director
$4.51M
@ $102.90 · 2026-02-17
BARAKETT TIMOTHY R.
Director
$5.25M
@ $104.93 · 2026-02-09
BARAKETT TIMOTHY R.
Director
$4.13M
@ $117.92 · 2025-05-22
SCULLY ROBERT W
Director
$1.50M
@ $113.49 · 2025-05-06
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
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
KKR
1
Sells (3M)
1
Sells (12M)
Total value (12M): $1.09M
HOLMES DANE E
Officer
$1.09M
@ $108.58 · 2026-09-03
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
😨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.
KKR
FearGreed
😨Fear(40/100)

"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: Fear (39)
KKR
⚪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 (40)
View BAC Full AnalysisView KKR Full Analysis

Frequently Asked Questions: BAC vs KKR

Is Bank of America Corporation or KKR & Co. Inc. 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 KKR's -100.0% margin of safety (intrinsic $0 vs. $94).

Which stock has a wider economic moat, Bank of America Corporation or KKR & Co. Inc.?▼

BAC scores 100/100 (Wide moat), while KKR scores 24/100 (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 0.2 places it in the Distress zone, signaling elevated bankruptcy risk. KKR scores 0.8 (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 KKR & Co. Inc.?▼

BAC earns 3.8% ROIC versus KKR's 3.1%. 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 KKR & Co. Inc.'s?▼

BAC's dividend earns a safety score of 79/100 (Safe), compared to KKR's 58/100 (Borderline). BAC has raised its dividend for 3 consecutive years.