In today's first round match-up of The Motley Fool Better-Buy Tournament, BP squares off against Citigroup 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 Citigroup (C -0.59%) should move on to the next round because of CEO Michael Corbat's vision for the bank. Corbat has spent his entire career with Citigroup and appears to be refocusing the company. David also argues the bank's global footprint is an unmatched competitive advantage. Ultimately, David believes Citigroup's valuation today is depressed because of low investor expectations -- expectations David believe the bank can top.
Motley Fool energy analyst Joel South believes BP (BP -0.92%) offers a unique opportunity for investors looking for value and broad energy exposure to their portfolio. Investors are still focused on BP's lingering ramifications from the Macondo oil spill in 2010. The integrated oil major has already divested $40 billion in assets with plans to unload an additional $10 billion, which should just about cover all liabilities from the disaster. Still overlooked is growing return on capital employed in BP's core businesses and the tremendous growth opportunities awaiting this trim integrated oil company. If the growth potential and cheap valuation metrics are not enough for you, BP also offers an imposing 4.7% dividend.
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?
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Cast your vote in the poll below the video!