Better Buy: Bank of America vs. Alcoa

In today's ­first round match-up of The Motley Fool Better-Buy Tournament, Bank of America squares off against Alcoa in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each as they make the case for their stocks with the winner determined by you, the readers.

Motley Fool banking analyst David Hanson believes Bank of America (NYSE: BAC  ) should move on to the next round because of its cheap valuation relative to its potential performance in the coming years. David also argues the bank's effort to return more capital to shareholders via dividends and share buybacks will be a significant catalyst. Ultimately, David believes Bank of America's business model is unmatched and capable of surviving the next downturn.

Motley Fool energy analyst Taylor Muckerman thinks Alcoa (NYSE: AA  ) should move on to the next round because of the growing trend in the automobile sector to transition from heavier steel to more fuel-friendly aluminum. On top of this, management has made some very prudent, but difficult, decisions to put the company in a position to succeed with lower cost and higher performing operations.

Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket

This year's winning stock?

There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Cast your vote in the poll below the video!

Read/Post Comments (3) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 18, 2014, at 11:27 PM, jammer5050 wrote:

    Here you have two "experts" both thinking that the other stock is the better play.....bottom line is neither one its a coin flip. This is about as insightful as Jim Cramer stating it would takes years so for CSCO to come back from its took only 6 months! Most experts are jokes...they sound good but most do not have a clue to what they are stating.

  • Report this Comment On March 18, 2014, at 11:29 PM, jammer5050 wrote:

    Spell check......Cisco

  • Report this Comment On March 19, 2014, at 7:39 PM, cmalek wrote:

    That's like comparing Killer Kowalski to Vasilyi Alekseyev or Cassius Clay to Nadia Comanici.

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David Hanson

David has been with The Motley Fool since 2013. He is a graduate of the University of Miami. Follow David on Twitter for all things finance, marketing, and investing.

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Related Tickers

9/1/2015 4:02 PM
AA $9.22 Down -0.23 -2.43%
Alcoa, Inc. CAPS Rating: ****
BAC $15.58 Down -0.76 -4.65%
Bank of America CAPS Rating: ****