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Compare Stocks › AOS vs PFE

A. O. Smith Corporation (AOS) vs Pfizer Inc. (PFE)

AOS
A. O. Smith Corporation
$64.54
VS
PFE
Pfizer Inc.
$27.41

Rewards

AOS
  • ★A. O. Smith Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★A. O. Smith Corporation scores 95/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Free cash flow has grown at a 19.4% CAGR over the past 4 years, demonstrating strong earnings power growth.
PFE
  • ★Gross margin of 75.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Dividend yield of 6.28% with a consistent or growing payout over the past 4 years.
  • ★FCF yield of 8.6% is historically attractive — the business generates significant cash relative to its price.

Risks

AOS
    PFE
    • ⚠ROIC has declined by 13.9 percentage points over the observed period, which may signal competitive erosion.
    • ⚠Free cash flow has declined at a 29.6% CAGR over the past 4 years — a concerning trend.

    Key Valuation Metrics

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    AOS
    PFE
    Valuation
    $426.16M
    Free Cash Flow
    $13.43B
    4.77%
    FCF Yield
    8.61%
    16.76
    Trailing P/E
    20.15
    14.86
    Forward P/E
    9.69
    Quality & Moat
    26.34%
    ROIC
    7.67%
    29.40%
    ROE
    8.96%
    38.83%
    Gross Margin
    75.81%
    0.88
    PEG Ratio
    N/A
    Balance Sheet Safety
    0.11
    Debt / Equity
    0.78
    N/A
    Interest Coverage
    N/A
    0.01
    Net Debt / EBITDA
    2.10
    2.17%
    Dividend Yield
    6.28%
    AOS: 5Ties: 1PFE: 5
    AOSPFE

    Historical Fundamentals

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    AOS

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    PFE

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    $1 Retained Earnings Test

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    AOS
    $0.57
    created per $1 retained over 3 years
    Mediocre Allocator
    Σ Retained
    $1.07B
    Δ Market Cap
    +$612.2M
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
    PFE
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-10.61B
    Δ Market Cap
    $-146.18B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Discounted Cash Flow (DCF) Analysis

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    AOS
    26.3% Margin of Safety
    Price is 26.3% below estimated fair value
    Current Price: $64.54
    Fair Value: $87.59
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    PFE
    140.2% Overvalued
    Price is 140.2% above estimated fair value
    Current Price: $27.41
    Fair Value: $11.41
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    AOS

    What growth rate is the market pricing in at $65?

    +5.0%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +8.4%

    The market implies +5.0% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +8.4%, reflecting heavy growth investment expected to generate future returns.

    PFE

    What growth rate is the market pricing in at $27?

    +11.8%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +4.3%

    The market implies +11.8% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +4.3%, reflecting heavy growth investment.

    Economic Moat Score

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    AOS
    95/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
    PFE
    35/100
    No Moat
    70+ Wide · 40-69 Narrow · <40 None

    No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

    Forensic Accounting

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    AOS
    -2.50
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
    PFE
    -2.53
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Ownership Breakdown

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    AOS
    Insiders 0.4%Institutions 108.0%
    No. of Institutional Holders903
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
    PFE
    Insiders 0.1%Institutions 67.7%Retail & Other 32.2%
    No. of Institutional Holders3,693
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

    High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

    Insider Buying Activity

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    AOS
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    PFE
    0
    Buys (3M)
    0
    Buys (12M)
    BLAYLOCK RONALD E
    Director
    $499,072
    @ $25.65 · 2025-02-13
    GOTTLIEB SCOTT
    Director
    $28,240
    @ $28.24 · 2024-10-30
    Open market purchases · includes direct & indirect ownership · excludes option exercises

    Open market purchases · includes direct & indirect ownership · excludes option exercises.

    Insider Selling Activity

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    AOS
    2
    Sells (3M)
    5
    Sells (12M)
    Total value (12M): $3.11M
    SCHUH DARRELL W
    Officer
    $82,126
    @ $74.39 · 2026-03-04
    SCHUH DARRELL W
    Officer
    $28,439
    @ $79.88 · 2026-02-13
    STERN JAMES F
    General Counsel
    $1.24M
    @ $71.24 · 2025-08-07
    WHEELER KEVIN J.
    Officer and Director
    $1.58M
    @ $71.26 · 2025-07-30
    SMITH MARK D
    Director
    $171,264
    @ $71.36 · 2025-07-29
    HEIDEMAN ROBERT JAMES
    Chief Technology Officer
    $67,357
    @ $65.65 · 2025-02-07
    KARGE DOUGLAS SAMUEL
    Officer
    $27,507
    @ $65.65 · 2025-02-07
    CARVER SAMUEL M
    Officer
    $1.19M
    @ $81.00 · 2024-08-07
    BROWN RONALD DALE
    Director
    $311,071
    @ $85.67 · 2024-07-30
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    PFE
    0
    Sells (3M)
    0
    Sells (12M)
    DAMICO JENNIFER B.
    Officer
    $64,825
    @ $25.93 · 2025-03-04
    DAMICO JENNIFER B.
    Officer
    $147,714
    @ $28.66 · 2024-08-13
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

    🎭 Mr. Market's Mood

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    AOS
    FearGreed
    😨Fear(36/100)

    "Market is pessimistic — investigate whether fears are temporary or structural"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
    PFE
    FearGreed
    😏Greed(64/100)

    "Market is optimistic — be cautious and ensure you have a margin of safety"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    ⚖️ Buffett Signal

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    AOS
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Fear (36)
    PFE
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Greed (64)
    View AOS Full AnalysisView PFE Full Analysis