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Bank of America Corporation (BAC) vs Republic Services, Inc. (RSG): 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%. RSG is overvalued at $244, with an intrinsic value of $131 and a margin of safety of -86%. Of the two, BAC has the wider margin of safety.

BAC
Bank of America Corporation
$50.01
VS
RSG
Republic Services, Inc.
$244.04

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 0.91 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
RSG
  • ★Republic Services, Inc. scores 89/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Free cash flow has grown at a 11.5% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $2.00 of earning power — management is creating shareholder value.

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.
RSG
  • ⚠FCF yield of 2.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠PEG ratio of 3.16 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

Key Valuation Metrics

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BAC
RSG
Valuation
N/A
Free Cash Flow
$1.98B
N/A
FCF Yield
2.66%
11.94
Trailing P/E
33.80
9.64
Forward P/E
30.48
Quality & Moat
3.80%
ROIC
10.51%
10.73%
ROE
18.48%
0.00%
Gross Margin
43.02%
0.91
PEG Ratio
3.16
Balance Sheet Safety
N/A
Net Debt / Equity
1.14
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
2.60
2.56%
Dividend Yield
1.10%
BAC: 4Ties: 1RSG: 3
BACRSG

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.

RSG

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
RSG
$6.36
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$3.85B
Δ Market Cap
+$24.50B
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
RSG
86.3% Overvalued
Price is 86.3% above estimated fair value
Current Price: $244.04
Fair Value: $130.97
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.

RSG

What growth rate is the market pricing in at $244?

+17.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +18.6%

The market implies +17.3% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +18.6%, 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.
RSG
89/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability 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 5 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.
RSG
-2.74
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.
RSG
Insiders 0.2%Institutions 99.5%Retail & Other 0.4%
No. of Institutional Holders1,828
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
RSG
12
Buys (3M)
15
Buys (12M)
Total value (12M): $1.58B
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$129.31M
@ $222.63 · 2026-09-11
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$159.59M
@ $221.41 · 2026-09-09
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$164.70M
@ $223.99 · 2026-09-04
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$119.10M
@ $223.04 · 2026-09-02
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$122.37M
@ $221.52 · 2026-08-31
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$123.51M
@ $220.52 · 2026-08-27
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$127.03M
@ $222.42 · 2026-08-25
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$88.18M
@ $220.30 · 2026-08-21
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$83.40M
@ $220.08 · 2026-08-19
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$76.64M
@ $215.26 · 2026-08-17
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$78.33M
@ $215.81 · 2026-08-13
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$108.15M
@ $215.57 · 2026-08-11
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$101.84M
@ $208.69 · 2026-05-18
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$100.53M
@ $201.40 · 2026-05-13
WEYMOUTH KATHARINE B
Director
$100,122
@ $209.46 · 2025-12-09
CASCADE INVESTMENT, L.L.C.
Beneficial Owner of more than 10% of a Class of Security
$1.00M
@ $234.91 · 2025-08-19
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
RSG
0
Sells (3M)
1
Sells (12M)
Total value (12M): $77,877
CARLSEN ELYSE
Officer
$77,877
@ $216.32 · 2026-05-19
BRUMMER GREGG
Chief Operating Officer
$1.72M
@ $233.94 · 2025-08-22
CARLSEN ELYSE
Officer
$59,495
@ $253.17 · 2025-06-05
RICHARDSON LARSON
Officer
$525,954
@ $239.07 · 2025-03-03
BRUMMER GREGG
Chief Operating Officer
$1.44M
@ $228.20 · 2025-02-19
WEYMOUTH KATHARINE B
Director
$400,187
@ $215.27 · 2024-12-05
DELGHIACCIO BRIAN M
Chief Financial Officer
$1.07M
@ $210.02 · 2024-11-19
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.
RSG
FearGreed
😏Greed(70/100)

"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.

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)
RSG
⚪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 (70)
View BAC Full AnalysisView RSG Full Analysis

Frequently Asked Questions: BAC vs RSG

Is Bank of America Corporation or Republic Services, 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 RSG's -86.3% margin of safety (intrinsic $131 vs. $244).

Which stock has a wider economic moat, Bank of America Corporation or Republic Services, Inc.?▼

BAC scores 100/100 (Wide moat), while RSG scores 89/100 (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. RSG scores 3.0 (Grey 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 Republic Services, Inc.?▼

RSG earns 10.5% ROIC versus BAC's 3.8%. 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 Republic Services, Inc.'s?▼

RSG's dividend earns a safety score of 94/100 (Very Safe), compared to BAC's 79/100 (Safe). RSG has raised its dividend for 3 consecutive years.

BAC vs RSG: Which Is the Better Buy in 2026? | SafetyMargin.io