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?
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Cast your vote in the poll below the video!
David Hanson has no position in any stocks mentioned. David Meier owns shares of InvenSense. The Motley Fool recommends Bank of America and InvenSense. The Motley Fool owns shares of Bank of America and InvenSense. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.