Better Buy: Bank of America vs. Visa
I'll preface this article by saying that in general I would recommend buying both Bank of America (NYSE: BAC) and Visa (NYSE: V). Bank of America is the second-largest bank in America by assets and has come a long way since the Great Recession. It has built up a very solid capital foundation, allowing it to absorb tens of billions in loan losses and still maintain solid capital ratios. It has also managed to stay profitable during the very difficult economic conditions created by the coronavirus pandemic.
Unfortunately, in this showdown, it happens to run into an absolute juggernaut in Visa. Over the past decade, Visa has grown from just shy of $22 per share at the beginning of 2010 to nearly $188 per share at the end of 2019. It has been less volatile than Bank of America through the coronavirus pandemic, with its current share price trading slightly higher than where it began the year, and the acceleration of digital payment trends brought on by the pandemic bodes extremely well for the company.
Image source: Visa.
Source Fool.com
