In today's match-up of The Motley Fool's Better-Buy Tournament, Rite Aid squares off against Broadcom 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 consumer-goods editor Mark Reeth thinks Rite Aid (NYSE:RAD) is one of the best under-the-radar stocks on the market. A lot of people are well aware of how much the company struggled over the past few years, but much fewer know how strong the company looks today. Last year it turned a profit of $118 million, and that's on track to improve this year thanks to the company's strong pharmacy segment. This segment will also propel profits thanks to the effects of reformed health-care laws, which Rite Aid is well positioned to take advantage of.
Motley Fool tech and telecom analyst Andrew Tonner makes the case for Broadcom (UNKNOWN:BRCM.DL) to advance to the next round because of its intriguing mix of hugely profitable core businesses and exciting growth potential. Broadcom's business is divided into three segments. Its networking and home communications businesses are both cash cows that give it a firm financial foundation. But it's Broadcom's integrated chip business that really excites investors. Its chips help power many of the world's highest-profile mobile devices, like Apple's iPhone. However, Broadcom hopes to expand its reach in mobile even more, which could mean big bucks for its investors.
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.
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!
Andrew Tonner owns shares of Apple. Mark Reeth has no position in any stocks mentioned. The Motley Fool recommends Apple and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. 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.