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Compare Stocks › BAC vs MCHP

Bank of America Corporation (BAC) vs Microchip Technology Incorporated (MCHP): Which Is the Better Buy in 2026?

As of 2026-06-19, BAC is undervalued at $56, with a DCF intrinsic value of $133 and a margin of safety of 58%. MCHP is undervalued at $100, with an intrinsic value of $220 and a margin of safety of 55%. Of the two, BAC has the wider margin of safety.

BAC
Bank of America Corporation
$56.20
VS
MCHP
Microchip Technology Incorporated
$99.77

Rewards

BAC
  • ★Bank of America Corporation scores 100/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
MCHP
  • ★Management has timed buybacks well — 2 out of 3 years showed value-accretive repurchases.
  • ★PEG ratio of 0.35 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Altman Z-Score of 5.12 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.
  • ⚠Altman Z-Score of 0.22 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
MCHP
  • ⚠ROIC has declined by 14.7 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Microchip Technology Incorporated scores only 28/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
  • ⚠FCF yield of 2.1% 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
MCHP
Valuation
N/A
Free Cash Flow
$1.14B
N/A
FCF Yield
2.11%
13.95
Trailing P/E
453.50
11.13
Forward P/E
24.33
Quality & Moat
3.89%
ROIC
5.26%
10.64%
ROE
3.40%
0.00%
Gross Margin
57.73%
1.02
PEG Ratio
0.35
Balance Sheet Safety
N/A
Net Debt / Equity
0.84
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
4.43
1.97%
Dividend Yield
1.90%
BAC: 3Ties: 2MCHP: 3
BACMCHP

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.

MCHP

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
MCHP
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-843.3M
Δ Market Cap
+$4.89B
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
57.9% Margin of Safety
Price is 57.9% below estimated fair value
Current Price: $56.20
Fair Value: $133.45
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
MCHP
4.4% Margin of Safety
Price is 4.4% below estimated fair value
Current Price: $99.77
Fair Value: $104.40
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.

MCHP

What growth rate is the market pricing in at $100?

+25.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +20.8%

The market implies +25.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +20.8%, reflecting heavy 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.
MCHP
28/100
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.
MCHP
-2.85
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
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 70.6%Retail & Other 22.0%
No. of Institutional Holders4,373
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.
MCHP
Insiders 2.1%Institutions 100.6%
No. of Institutional Holders1,615
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
MCHP
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
MCHP
3
Sells (3M)
6
Sells (12M)
Total value (12M): $4.08M
CHAPMAN MATTHEW W
Director
$292,546
@ $97.52 · 2026-05-28
CHAPMAN MATTHEW W
Director
$954,799
@ $95.48 · 2026-05-15
BUNKER MATHEW B.
Officer
$1.02M
@ $96.88 · 2026-05-13
KRAWCZYK JOSEPH R. II
Officer
$345,743
@ $78.58 · 2026-02-12
BUNKER MATHEW B.
Officer
$783,700
@ $78.37 · 2026-02-12
CHAPMAN MATTHEW W
Director
$682,550
@ $68.25 · 2025-08-25
JOHNSON KARLTON D
Director
$29,981
@ $60.69 · 2025-05-20
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(74/100)

"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.
MCHP
FearGreed
😐Neutral(56/100)

"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 (74)
MCHP
⚪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 (56)
View BAC Full AnalysisView MCHP Full Analysis

Frequently Asked Questions: BAC vs MCHP

Is Bank of America Corporation or Microchip Technology Incorporated more undervalued in 2026?▼

Based on our discounted cash flow model, BAC trades at a 57.9% margin of safety (intrinsic value $133 vs. price $56), compared to MCHP's 54.6% margin of safety (intrinsic $220 vs. $100).

Which stock has a wider economic moat, Bank of America Corporation or Microchip Technology Incorporated?▼

BAC scores 100/100 (Wide moat), while MCHP scores 28/100 (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. MCHP scores 5.1 (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 Microchip Technology Incorporated?▼

MCHP earns 5.3% ROIC versus BAC's 3.9%. 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 Microchip Technology Incorporated's?▼

BAC's dividend earns a safety score of 79/100 (Safe), compared to MCHP's 24/100 (Unsafe). BAC has raised its dividend for 3 consecutive years.