AGO vs BAC

For growth investors, Bank of America Corporation (BAC) is the stronger pick with -1.

9% revenue growth year-over-year, versus -19. 8% for Assured Guaranty Ltd. (AGO). Assured Guaranty Ltd. (AGO) offers the better valuation at 11. 9x trailing P/E (12. 4x forward), making it the more compelling value choice. Analysts rate Assured Guaranty Ltd. (AGO) a "Buy" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Assured Guaranty Ltd.

(AGO) is the cheapest at 11. 9x versus Bank of America Corporation at 14. 0x. On forward P/E, Bank of America Corporation is actually cheaper at 12. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Bank of America Corporation wins at 0. 78x versus Assured Guaranty Ltd. 's 1. 08x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Assured Guaranty Ltd.

(AGO) delivered a total return of +71. 8%, compared to +38. 9% for Bank of America Corporation (BAC). Over 10 years, the gap is even starker: BAC returned +332. 5% versus AGO's +247. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Assured Guaranty Ltd.

(AGO) is the lower-risk stock at 0. 45β versus Bank of America Corporation's 1. 00β — meaning BAC is approximately 124% more volatile than AGO relative to the S&P 500. On balance sheet safety, Assured Guaranty Ltd. (AGO) carries a lower debt/equity ratio of 31% versus 121% for Bank of America Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Bank of America Corporation (BAC) is pulling ahead at -1.

9% versus -19. 8% for Assured Guaranty Ltd. (AGO). On earnings-per-share growth, the picture is similar: Bank of America Corporation grew EPS 18. 6% year-over-year, compared to -44. 1% for Assured Guaranty Ltd.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Assured Guaranty Ltd.

(AGO) is the more profitable company, earning 46. 2% net margin versus 16. 2% for Bank of America Corporation — meaning it keeps 46. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AGO leads at 60. 0% versus 18. 5% for BAC. At the gross margin level — before operating expenses — AGO leads at 100. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Bank of America Corporation (BAC) is the more undervalued stock at a PEG of 0. 78x versus Assured Guaranty Ltd. 's 1. 08x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Bank of America Corporation (BAC) trades at 12. 1x forward P/E versus 12. 4x for Assured Guaranty Ltd. — 0. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AGO: 14. 6% to $94. 00.

All stocks in this comparison pay dividends.

Bank of America Corporation (BAC) offers the highest yield at 2. 4%, versus 1. 5% for Assured Guaranty Ltd. (AGO).

For long-horizon retirement investors, Assured Guaranty Ltd.

(AGO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 45), 1. 5% yield, +247. 7% 10Y return). Both have compounded well over 10 years (AGO: +247. 7%, BAC: +332. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.