Better Stock Today Challenge: Bank of America vs. Ford
In the spirit of World Cup competition, we're holding our own tournament in search of the better stock today. We're pitting 32 companies against each other and you, the reader, will determine the winner.
Bank of America takes on Ford Motor for this first round-robin match up in our search for the better stock today.
Banking analyst David Hanson makes the case for Bank of America to win this match up. He believes Bank of America's troubled mortgage unit is temporarily hiding the strong performance in the bank's other segments. The bank's wealth management business is world class and consistently generates returns on capital of over 30% -- not to mention the improving retail and investment banking segments. As the bank continues to work through legal issues, these high-performing business will cause the stock to fetch higher multiples than its currently assigned by the market.
Frank Thomas, research analyst for Hidden Gems, thinks that rebounding U.S. auto sales should push Ford to the next round. Drivers are beginning to replace aging clunkers that have been on the road for more than 11 years, on average. And with its new, fuel-efficient lineup, Ford is better positioned to take advantage than any other Detroit automaker. This will make Ford a market beater going forward, and that's why it should advance to the next round.
Warren Buffett vs. His Worst Nightmare
Warren Buffett just called this emerging technology a "real threat" to his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. It won't be long before everyone on Wall Street wises up, that's why The Motley Fool is releasing this timely investor alert. Click here to learn more about what's keeping Buffett up at night and the one public company we're calling the "brains behind" the technology.
Vote here to determine the winner of this match and sound off in the comments. Check back to Fool.com to see who advances in the tournament.
The article Better Stock Today Challenge: Bank of America vs. Ford originally appeared on Fool.com.David Hanson has no position in any stocks mentioned. Frank Thomas owns shares of Ford. The Motley Fool recommends Bank of America and Ford. The Motley Fool owns shares of Bank of America and Ford. 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.
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