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!