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Bank of America Corporation (BAC) vs Kimberly-Clark Corporation (KMB): Which Is the Better Buy in 2026?

As of 2026-09-17, BAC is undervalued at $58, with a DCF intrinsic value of $142 and a margin of safety of 59%. KMB is overvalued at $98, with an intrinsic value of $76 and a margin of safety of -29%. Of the two, BAC has the wider margin of safety.

BAC
Bank of America Corporation
$57.73
VS
KMB
Kimberly-Clark Corporation
$98.04

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 0.90 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
KMB
  • ★Kimberly-Clark Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Kimberly-Clark Corporation scores 78/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

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.
KMB
  • ⚠FCF yield of 5.0% suggests reasonable valuation assuming continued moderate growth.
  • ⚠High leverage (2.98x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.

Key Valuation Metrics

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BAC
KMB
Valuation
N/A
Free Cash Flow
$1.64B
N/A
FCF Yield
5.03%
13.33
Trailing P/E
19.38
10.91
Forward P/E
13.10
Quality & Moat
4.37%
ROIC
29.59%
11.20%
ROE
104.91%
0.00%
Gross Margin
37.61%
0.90
PEG Ratio
1.99
Balance Sheet Safety
N/A
Net Debt / Equity
2.98
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
1.60
2.21%
Dividend Yield
5.22%
BAC: 3Ties: 1KMB: 4
BACKMB

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.

KMB

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
KMB
$-8.48
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.45B
Δ Market Cap
$-12.33B
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
59.4% Margin of Safety
Price is 59.4% below estimated fair value
Current Price: $57.73
Fair Value: $142.10
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
KMB
28.6% Overvalued
Price is 28.6% above estimated fair value
Current Price: $98.04
Fair Value: $76.24
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.

KMB

What growth rate is the market pricing in at $98?

+6.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +9.8%

The market implies +6.9% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +9.8%, reflecting ongoing growth investment.

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.
KMB
78/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency 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.

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.
KMB
-2.54
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 7.0%Institutions 71.3%Retail & Other 21.7%
No. of Institutional Holders4,542
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.
KMB
Insiders 0.7%Institutions 99.2%Retail & Other 0.0%
No. of Institutional Holders2,209
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
KMB
0
Buys (3M)
1
Buys (12M)
Total value (12M): $1.04M
MACLIN SAMUEL TODD
Director
$1.04M
@ $104.15 · 2026-02-09
MACLIN SAMUEL TODD
Director
$38,775
@ $145.77 · 2025-04-09
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
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
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
KMB
0
Sells (3M)
4
Sells (12M)
Total value (12M): $1.01M
SCRIBNER ANDREW
Officer
$401,310
@ $98.00 · 2026-05-06
CHEN KATY
Officer
$152,164
@ $95.34 · 2026-05-04
CHEN KATY
Officer
$136,222
@ $96.96 · 2026-04-30
SCRIBNER ANDREW
Officer
$317,980
@ $104.29 · 2026-02-05
HICKS ZACKERY ALLEN
Chief Technology Officer
$2.01M
@ $133.40 · 2025-08-04
CHEN KATY
Officer
$95,978
@ $129.70 · 2025-05-02
CHEN KATY
Officer
$234,545
@ $130.74 · 2025-04-29
DREXLER ANDREW CPA
Officer
$1.53M
@ $141.00 · 2025-02-28
DREXLER ANDREW CPA
Officer
$350,000
@ $140.00 · 2025-02-21
DREXLER ANDREW CPA
Officer
$417,036
@ $139.01 · 2024-11-22
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(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.
KMB
FearGreed
😨Fear(28/100)

"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 (53)
KMB
⚪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 (28)
View BAC Full AnalysisView KMB Full Analysis

Frequently Asked Questions: BAC vs KMB

Is Bank of America Corporation or Kimberly-Clark Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, BAC trades at a 59.4% margin of safety (intrinsic value $142 vs. price $58), compared to KMB's -28.6% margin of safety (intrinsic $76 vs. $98).

Which stock has a wider economic moat, Bank of America Corporation or Kimberly-Clark Corporation?▼

BAC scores 100/100 (Wide moat), while KMB scores 78/100 (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. KMB scores 3.4 (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, Bank of America Corporation or Kimberly-Clark Corporation?▼

KMB earns 29.6% 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 Kimberly-Clark Corporation's?▼

BAC's dividend earns a safety score of 79/100 (Safe), compared to KMB's 34/100 (Unsafe). BAC has raised its dividend for 3 consecutive years.