Aptiv PLC (APTV) vs Pfizer Inc. (PFE): Which Is the Better Buy in 2026?
As of 2026-09-17, APTV is undervalued at $44, with a DCF intrinsic value of $166 and a margin of safety of 74%. PFE is overvalued at $28, with an intrinsic value of $22 and a margin of safety of -24%. Of the two, APTV has the wider margin of safety.
Rewards
- ★Free cash flow has grown at a 54.0% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Share count has been reduced by 21% over the past 4 years through buybacks, increasing each share's claim on earnings.
- ★4 insider purchases totaling $8.3M with no sells in the past 3 months — insiders are putting their own money in.
- ★Gross margin of 74.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Insiders have bought $3.0M worth of stock in the past 3 months — significant skin in the game.
Risks
- ⚠Gross margin of 19.3% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠ROIC has declined by 15.9 percentage points over the past 4 years, which may signal competitive erosion.
- ⚠FCF yield of 7.9% suggests reasonable valuation assuming continued moderate growth.
- ⚠PEG ratio of 12.68 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $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
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $44?
The market implies +12.3% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding -3.9%, reflecting heavy growth investment.
What growth rate is the market pricing in at $28?
The market implies +6.2% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +5.3%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Narrow moat with reinvestment efficiency as the key competitive advantage. Improving roic consistency would strengthen the moat.
No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Forensic Accounting
Learn more →M-Score Trend
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.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pessimistic — investigate whether fears are temporary or structural"
"Market is optimistic — be cautious and ensure you have a margin of safety"
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
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: APTV vs PFE
Is Aptiv PLC or Pfizer Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, APTV trades at a 73.6% margin of safety (intrinsic value $166 vs. price $44), compared to PFE's -23.5% margin of safety (intrinsic $22 vs. $28).
Which stock has a wider economic moat, Aptiv PLC or Pfizer Inc.?▼
APTV scores 51/100 (Narrow moat), while PFE scores 35/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Pfizer Inc. in financial distress?▼
PFE's Altman Z-Score of 2.1 places it in the Grey zone, signaling elevated bankruptcy risk. APTV scores 2.4 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which company has better free cash flow, Aptiv PLC or Pfizer Inc.?▼
Aptiv PLC (APTV) generates a 17.8% free cash flow yield, compared to Pfizer Inc.'s 7.9%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Aptiv PLC or Pfizer Inc.?▼
APTV earns 14.2% ROIC versus PFE's 9.4%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.