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Compare Stocks › BAC vs PCG

Bank of America Corporation (BAC) vs PG&E Corporation (PCG): Which Is the Better Buy in 2026?

As of 2026-11-02, BAC is undervalued at $50, with a DCF intrinsic value of $154 and a margin of safety of 68%. PCG is overvalued at $13, 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
PCG
PG&E Corporation
$13.18

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.
PCG
  • ★Each dollar of retained earnings has created $1.40 of earning power — management is creating shareholder value.
  • ★Trailing P/E of 9.8x is 40% below the historical average of 16.4x — potentially undervalued relative to its own history.
  • ★PEG ratio of 0.55 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.
PCG
  • ⚠Share count has increased by 11% over the past 4 years, diluting existing shareholders.
  • ⚠High leverage (1.85x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Net debt/EBITDA of 6.0x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.

Key Valuation Metrics

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BAC
PCG
Valuation
N/A
Free Cash Flow
$-6.49B
N/A
FCF Yield
-16.40%
11.94
Trailing P/E
9.76
9.64
Forward P/E
7.31
Quality & Moat
3.74%
ROIC
4.80%
10.73%
ROE
8.89%
0.00%
Gross Margin
40.57%
0.91
PEG Ratio
0.55
Balance Sheet Safety
N/A
Net Debt / Equity
1.85
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
6.05
2.56%
Dividend Yield
1.52%
BAC: 2Ties: 1PCG: 5
BACPCG

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.

PCG

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
PCG
$0.42
created per $1 retained over 3 years
Value Destroyer
Σ Retained
$7.07B
Δ Market Cap
+$3.00B
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
67.6% Margin of Safety
Price is 67.6% below estimated fair value
Current Price: $50.01
Fair Value: $154.42
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
PCG
Insufficient Data
Enter initial FCF to calculate intrinsic value
Current Price: $13.18
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.

PCG

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.
PCG
33/100
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.
PCG
-2.69
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.
PCG
Insiders 0.4%Institutions 104.2%
No. of Institutional Holders1,269
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
PCG
1
Buys (3M)
2
Buys (12M)
Total value (12M): $211,200
LARSEN JOHN O
Director
$91,500
@ $12.20 · 2026-09-30
LARSEN JOHN O
Director
$119,700
@ $15.96 · 2025-11-04
DENAULT LEO PAUL
Director
$100,548
@ $15.96 · 2025-03-11
BAHRI RAJAT
Director
$50,054
@ $15.79 · 2025-02-25
HERNANDEZ CARLOS M.
Director
$49,989
@ $15.91 · 2025-02-25
DENECOUR JESSICA L
Director
$21,269
@ $15.79 · 2025-02-21
HARRIS ARNO LOCKHEART
Director
$100,052
@ $15.66 · 2025-02-20
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
PCG
1
Sells (3M)
9
Sells (12M)
Total value (12M): $5.93M
FUGATE WILLIAM CRAIG
Director
$89,440
@ $13.76 · 2026-09-04
SANTOS MARLENE
Divisional Officer
$2.85M
@ $18.00 · 2026-07-22
COOPER KERRY WHORTON
Director
$22,500
@ $18.00 · 2026-07-22
PETERMAN CARLA J
President
$530,190
@ $16.68 · 2026-06-15
COOPER KERRY WHORTON
Director
$20,625
@ $16.50 · 2026-06-02
GLICKMAN JASON M.
Officer
$772,766
@ $16.35 · 2026-04-28
COOPER KERRY WHORTON
Director
$46,700
@ $18.68 · 2026-03-17
PETERMAN CARLA J
Officer
$582,002
@ $18.31 · 2026-03-16
SINGH SUMEET
Officer
$1.02M
@ $18.32 · 2026-03-05
GLICKMAN JASON M.
Divisional Officer
$470,094
@ $15.95 · 2025-10-30
PETERMAN CARLA J
Officer
$562,579
@ $17.30 · 2025-04-29
GLICKMAN JASON M.
Divisional Officer
$632,155
@ $15.71 · 2025-03-10
WILLIAMS STEPHANIE N.
Officer
$242,891
@ $16.21 · 2025-03-06
SANTOS MARLENE
Officer of Subsidiary Company
$2.06M
@ $16.37 · 2025-03-04
PETERMAN CARLA J
Officer
$532,369
@ $16.37 · 2025-03-04
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.
PCG
FearGreed
😐Neutral(43/100)

"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: Fear (39)
PCG
⚪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 (43)
View BAC Full AnalysisView PCG Full Analysis

Frequently Asked Questions: BAC vs PCG

Is Bank of America Corporation or PG&E Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, BAC trades at a 67.6% margin of safety (intrinsic value $154 vs. price $50), compared to PCG's -100.0% margin of safety (intrinsic $0 vs. $13).

Which stock has a wider economic moat, Bank of America Corporation or PG&E Corporation?▼

BAC scores 100/100 (Wide moat), while PCG scores 33/100 (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. PCG scores 0.5 (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 PG&E Corporation?▼

PCG earns 4.8% ROIC versus BAC's 3.7%. 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 PG&E Corporation's?▼

BAC's dividend earns a safety score of 79/100 (Safe), compared to PCG's 73/100 (Safe). BAC has raised its dividend for 3 consecutive years.