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Better Buy: Bank of America vs. Ford

By John Rosevear and David Hanson – Mar 22, 2014 at 10:00AM

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We've collected the most popular companies amongst Fool.com readers and put them head-to-head in a good old-fashioned challenge we're calling The Motley Fool's Better Buy Tournament.

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 (BAC 1.96%) 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 (F 3.88%) 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!

David Hanson has no position in any stocks mentioned. John Rosevear owns shares of Ford. The Motley Fool recommends and owns shares of Bank of America and Ford. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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