Better Buy: Bank of America vs. Ford

In today's ­second-round match-up of The Motley Fool's Better-Buy Tournament, Bank of America squares off against Ford in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each other 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 that 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.

Ford  (NYSE: F  )  has had a great turnaround, but so far, its turnaround has mostly been confined to the U.S. Ford continues to lose big money in Europe, and it's spending big money to expand in Asia. But those things will change in a couple of years, according to Motley Fool auto analyst John Rosevear. Ford's strong new products and cost discipline are working just as well in Europe as they did here. By the end of 2015, Europe will be profitable -- just as all those Asian investments start to pay off. That's what makes Ford a buy right now.

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

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Cast your vote in the poll below the video!


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Comments from our Foolish Readers

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  • Report this Comment On March 26, 2014, at 1:49 PM, SkepikI wrote:

    No transcript so I wont see what David has to say about a bank I have no as in zero respect for. Since you have been very diligent about transcripts JR, I have to presume this is the influence of David and his editors. Mores the pity. But, I cant be too sad about it as I will NEVER bank with or invest with BAC. Neither will you dear reader, if you bother to read "Crash of the Titans" and determine just how many of the miscreants and idiots involved still hold responsible (I use the term loosely) positions at BAC

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