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Bank of America Corporation (BAC) vs Simon Property Group, Inc. (SPG): 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%. SPG is fairly valued at $218, with an intrinsic value of $238 and a margin of safety of 9%. Of the two, BAC has the wider margin of safety.

BAC
Bank of America Corporation
$50.01
VS
SPG
Simon Property Group, Inc.
$217.75

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.
SPG
  • ★Gross margin of 81.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Simon Property Group, Inc. scores 74/100 on the Economic Moat Score (Wide Moat), with revenue predictability 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.
SPG
  • ⚠PEG ratio of 4.58 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠High leverage (4.86x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Net debt/EBITDA of 5.5x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.

Key Valuation Metrics

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BAC
SPG
Valuation
N/A
Free Cash Flow
$2.60B
N/A
FCF Yield
3.14%
11.94
Trailing P/E
15.37
9.64
Forward P/E
32.15
Quality & Moat
3.80%
ROIC
7.15%
10.73%
ROE
120.51%
0.00%
Gross Margin
81.43%
0.91
PEG Ratio
4.58
Balance Sheet Safety
N/A
Net Debt / Equity
4.86
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
5.54
2.56%
Dividend Yield
4.09%
BAC: 3Ties: 1SPG: 4
BACSPG

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.

SPG

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
SPG
$106.00
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$205.6M
Δ Market Cap
+$21.79B
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
SPG
8.5% Margin of Safety
Price is 8.5% below estimated fair value
Current Price: $217.75
Fair Value: $238.00
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.

SPG

What growth rate is the market pricing in at $218?

+8.5%
Market-Implied Owner Earnings Growth
Standard FCF implies +18.1%

The market implies +8.5% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +18.1%, reflecting heavy growth investment expected to generate future returns.

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.
SPG
74/100
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.

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.
SPG
-2.24
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.
SPG
Insiders 1.8%Institutions 96.0%Retail & Other 2.2%
No. of Institutional Holders1,865
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
SPG
0
Buys (3M)
22
Buys (12M)
Total value (12M): $696,520
JONES NINA P.
Director
$447.00
@ $223.50 · 2026-06-30
CICCO MARTIN J
Director
$447.00
@ $223.50 · 2026-06-30
AEPPEL GLYN F
Director
$9,871
@ $224.34 · 2026-06-30
STEWART MARTA R.
Director
$672.00
@ $224.00 · 2026-06-30
SELIG STEFAN M
Director
$7,392
@ $224.00 · 2026-06-30
ROE PEGGY FANG
Director
$2,010
@ $223.33 · 2026-06-30
RODKIN GARY M
Director
$10,538
@ $224.21 · 2026-06-30
SMITH DANIEL C.
Director
$13,004
@ $224.21 · 2026-06-30
LEIBOWITZ REUBEN S
Director
$17,525
@ $224.68 · 2026-06-30
GLASSCOCK LARRY C
Director
$15,046
@ $224.57 · 2026-06-30
JONES NINA P.
Director
$6,617
@ $183.81 · 2026-03-31
AEPPEL GLYN F
Director
$40,620
@ $183.80 · 2026-03-31
STEWART MARTA R.
Director
$36,025
@ $183.80 · 2026-03-31
SELIG STEFAN M
Director
$37,863
@ $183.80 · 2026-03-31
ROE PEGGY FANG
Director
$14,888
@ $183.80 · 2026-03-31
RODKIN GARY M
Director
$42,642
@ $183.80 · 2026-03-31
LEWIS RANDALL J.
Director
$10,293
@ $183.80 · 2026-03-31
SMITH DANIEL C.
Director
$65,249
@ $183.80 · 2026-03-31
LEIBOWITZ REUBEN S
Director
$90,246
@ $183.80 · 2026-03-31
GLASSCOCK LARRY C
Director
$68,557
@ $183.80 · 2026-03-31
LEWIS RANDALL J.
Director
$100,258
@ $183.96 · 2025-12-15
LEWIS RANDALL J.
Director
$106,310
@ $180.80 · 2025-11-18
AEPPEL GLYN F
Director
$38,678
@ $185.95 · 2025-09-30
SELIG STEFAN M
Director
$36,260
@ $185.95 · 2025-09-30
ROE PEGGY FANG
Director
$14,132
@ $185.95 · 2025-09-30
STEWART MARTA R.
Director
$7,205
@ $171.55 · 2025-08-14
JONES NINA P.
Director
$6,053
@ $159.29 · 2025-06-30
AEPPEL GLYN F
Director
$37,274
@ $159.29 · 2025-06-30
STEWART MARTA R.
Director
$33,132
@ $159.29 · 2025-06-30
ROE PEGGY FANG
Director
$13,699
@ $159.29 · 2025-06-30
RODKIN GARY M
Director
$39,185
@ $159.29 · 2025-06-30
SMITH DANIEL C.
Director
$60,212
@ $159.29 · 2025-06-30
LEIBOWITZ REUBEN S
Director
$83,149
@ $159.29 · 2025-06-30
LEIBOWITZ REUBEN S
Director
$79,434
@ $164.80 · 2025-03-31
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
SPG
0
Sells (3M)
1
Sells (12M)
Total value (12M): $2.01M
RULLI JOHN
Officer
$2.01M
@ $200.88 · 2026-02-25
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.
SPG
FearGreed
😏Greed(67/100)

"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)
SPG
⚪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 (67)
View BAC Full AnalysisView SPG Full Analysis

Frequently Asked Questions: BAC vs SPG

Is Bank of America Corporation or Simon Property Group, 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 SPG's 8.5% margin of safety (intrinsic $238 vs. $218).

Which stock has a wider economic moat, Bank of America Corporation or Simon Property Group, Inc.?▼

BAC scores 100/100 (Wide moat), while SPG scores 74/100 (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. SPG scores 1.3 (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 Simon Property Group, Inc.?▼

SPG earns 7.2% 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 Simon Property Group, Inc.'s?▼

BAC's dividend earns a safety score of 79/100 (Safe), compared to SPG's 54/100 (Borderline). BAC has raised its dividend for 3 consecutive years.