Apple Inc. (AAPL)vs Bank of America Corporation (BAC)

Quick verdict

One company sells hardware and subscriptions to consumers; the other lends money and manages wealth. Apple generated revenue of $466.8bn and net income of $128.9bn in the twelve months to June 2026, carrying a market value of $5,005.2bn at the 14 October 2026 close. Bank of America turned $119.2bn of revenue into $33.6bn of net income over the twelve months to June 2026, valued at $359.4bn. On our scored factors Bank of America takes valuation, growth and income, giving it 4.5 points against Apple's 1.5. Three factors — quality, balance sheet and momentum — could not be scored, and each adds half a point to both sides. The honest reading is that these two respond to entirely different forces: consumer upgrade cycles and services attach rates on one side, interest rates and credit conditions on the other.

At-a-glance comparison

Not scored — Quality: no gross margin, operating margin or ROIC for BAC. Balance sheet: no interest coverage for AAPL; no net debt/EBITDA, current ratio or interest coverage for BAC. Momentum: no share-price return data for either company. A factor missing a figure for either company cannot be won by either, so it adds half a point to each score, as a tie does.

Business model and revenue mix

Apple designs and sells iPhone, Mac, iPad and wearables, with a services arm spanning the App Store, iCloud, Apple Music and Apple Pay. That mix produced $466.8bn of revenue and $136.7bn of free cash flow in the twelve months to June 2026, with 14.59bn shares outstanding and a September fiscal year end. Bank of America is one of the largest US banks, combining consumer banking, wealth management, corporate lending and investment banking; its $119.2bn of revenue over the twelve months to June 2026 is roughly a quarter of Apple's, and it runs a December year end with 6.99bn shares outstanding. The structural contrast shows in the balance sheet: Apple carried $107.5bn of shareholders' equity at 27 June 2026, while Bank of America held $301.1bn at 30 June 2026 — nearly three times as much equity behind a far smaller revenue base.

Valuation

Bank of America wins this factor, and the spread is wide. Its shares traded at 11.87 times trailing earnings and 1.19 times book at the 14 October 2026 close, against 39.33 times earnings and 46.55 times book for Apple. Price-to-sales tells the same story — 3.01 versus 10.72 — as does PEG, at 1.95 against 5.72. For a lender, price-to-book is the more meaningful anchor, and 1.19 sits only modestly above the accounting value of equity. Apple's book multiple is largely an artefact of a small equity base rather than a comparable yardstick. Apple does offer an EV/EBITDA of 30.07 and a free cash flow yield of 2.73%, neither of which is available for Bank of America, since enterprise-value and cash-flow measures are not meaningful for a bank. On the figures we hold, Bank of America is the cheaper share.

Growth profile

On growth the verdict also goes to Bank of America, though the margins are narrow. Measured from fiscal 2022 to fiscal 2025, revenue compounded at 6.0% a year at the bank against 1.81% at Apple — Apple's three-year figure reflects a notably flat stretch for hardware. Over the longer window from fiscal 2020 to fiscal 2025, the ranking reverses on revenue, with Apple at 8.68% a year and Bank of America at 5.75%. Earnings per share tell a similar mixed tale: 6.88% a year for Apple over three years against 6.1% for the bank, but 17.86% versus 15.3% across five years. In short, Apple grew faster over the longer horizon while Bank of America has carried the better recent revenue momentum, and the scoring tips to the latter.

Profitability and quality

Quality could not be scored here, because three of the inputs are missing for Bank of America: gross margin, operating margin and return on invested capital. Gross margin is not printed for lenders, whose principal costs sit in interest and credit provisions rather than cost of sales, and the return-on-capital calculation requires debt and cash figures that are not interpretable for a bank. What we can report is that Apple posted a 48.65% gross margin, a 33.17% operating margin and a 27.62% net margin over the twelve months to June 2026, with operating income of $154.9bn. Bank of America's 28.21% net margin is actually marginally the higher of the two at the net line. Return on equity reads 148.75% for Apple against 11.23% for the bank, but Apple's figure is flattered by an equity base shrunk to $107.5bn by years of buybacks; its 84.08% return on invested capital is the fairer gauge.

Balance-sheet risk

No verdict is possible on financial strength. Interest coverage is unavailable for both companies, and for Bank of America net debt to EBITDA and the current ratio are also absent — banks do not report current assets and liabilities in the conventional way, and their cash and total debt figures were withheld as not interpretable in this context. For Apple, what we do hold is reassuring on its own terms: $39.5bn of cash against $84.3bn of total debt at 27 June 2026, net debt of just 0.27 times EBITDA, and a current ratio of exactly 1.0. Bank of America's $301.1bn of shareholders' equity at 30 June 2026 is the relevant scale marker for a lender, though book equity alone does not substitute for the capital and liquidity ratios this comparison lacks.

Price performance and shareholder returns

Income goes decisively to Bank of America. Its 2.14% dividend yield at the 14 October 2026 close is roughly seven times Apple's 0.31%, built on $1.10 of dividends per share over the twelve months to June 2026 against Apple's $1.05 — on a share price of $51.39 versus $342.96. The bank's payout ratio of 29.04% leaves ample headroom, while Apple distributes only 12.13% of earnings. Buybacks widen the gap rather than closing it: Bank of America's 6.92% buyback yield dwarfs Apple's 1.64%, giving the bank a far larger total shareholder distribution relative to its market value. Momentum could not be assessed for either company, as we hold no licensed share-price history, so one-, three- and five-year returns are absent on both sides of this comparison.

Which stock fits which investor

A value-oriented investor has a clearer case with Bank of America on these numbers: 11.87 times earnings, 1.19 times book and a PEG of 1.95. Income seekers will note the same name's 2.14% yield and 6.92% buyback yield against Apple's 0.31% and 1.64%. Bank of America is also flagged for growth, chiefly on its 6.0% three-year revenue CAGR. No quality pick could be made, since the margin and return-on-capital inputs are missing for the bank. Investors focused on operating economics will still note Apple's 33.17% operating margin, 84.08% return on invested capital and $136.7bn of free cash flow — characteristics tagged "mature, high-quality" — but those come at 39.33 times earnings. Bank of America carries a plain "mature" tag. Neither profile suits every mandate, and the two respond to different macro drivers entirely.

• Value: BAC
• Growth: BAC
• Income: BAC
• Quality: Not scored

Frequently asked questions

Which is cheaper, Apple or Bank of America?

Bank of America, on every multiple we hold. At the 14 October 2026 close it traded at 11.87 times trailing earnings, 3.01 times sales and 1.19 times book, against 39.33, 10.72 and 46.55 for Apple. Its PEG of 1.95 also compares favourably with Apple's 5.72.

Why is there no gross margin or ROIC for Bank of America?

Gross margin is not printed for lenders because their main costs — interest and credit provisions — sit outside cost of sales, and return on invested capital needs total debt and cash figures that are not interpretable for a bank. That is why the quality factor could not be scored, despite Apple's 48.65% gross margin and 84.08% ROIC being available.

Which pays the better dividend?

Bank of America. It yielded 2.14% at the 14 October 2026 close from $1.10 of dividends per share, with a 29.04% payout ratio. Apple yielded 0.31% from $1.05 per share on a payout ratio of 12.13%.

Is Apple's 148.75% return on equity as strong as it looks?

It should be read with care. Apple's shareholders' equity stood at just $107.5bn at 27 June 2026 after sustained buybacks, which mechanically inflates the ratio. Return on invested capital of 84.08% is the more representative measure, and it remains high. Bank of America's ROE was 11.23%.

How do their share price returns compare?

We cannot say. We hold no licensed share-price history for either company, so one-, three- and five-year returns are unavailable and momentum was not scored. What we can report are the 14 October 2026 closing prices: $342.96 for Apple and $51.39 for Bank of America.

Go deeper: guides for this comparison

• How to compare bank stocks: JPMorgan vs Bank of AmericaWhy the usual ratios fail for banks, how price-to-book and return on equity work together, what our bank pages show, and the numbers you still need from the filings.
• Dividends vs buybacks: how companies hand cash back, and how to judge itDividend yield, payout ratio and buyback yield explained with real companies, why a high yield can be a warning, and how to tell whether a payout is sustainable.
• How the six-factor score works — and where it falls shortThe exact rules behind every TickerVerdict verdict: what each of the six factors measures, how ties are decided, a worked example, and the score's real limits.
• How to read a 10-K: where every number on TickerVerdict comes fromA practical walk through a company's annual report — the sections worth your time, the three statements, and how filings become trailing-twelve-month figures.

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