In today's match-up of The Motley Fool's Better-Buy Tournament, InvenSense squares off against Bank of America 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.
InvenSense (NYSE: INVN ) is the better buy today for 2 big reasons. First, more than 7 billion mobile devices will hit the market over the next 5 years. And the expectations for the wearables market are even larger. All of those devices will need sensors, and InvenSense will be there to supply them. The company designs accelerometers, gyroscopes, and microphones, and packages them in various combinations with tiny processors, bringing incredible functionality to users. Management expects sales growth in 2014 to be 25%-35%. Motley Fool analyst, Dave Meier, expects the stock price to respond in kind, making it the better buy today.
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 over 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.
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!