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Alexandria Real Estate Equities (ARE) vs QUALCOMM Incorporated (QCOM): Which Is the Better Buy in 2026?

As of 2026-08-03, ARE is undervalued at $51, with a DCF intrinsic value of $9106274826 and a margin of safety of 100%. QCOM is overvalued at $148, with an intrinsic value of $127 and a margin of safety of -16%. Of the two, ARE has the wider margin of safety.

ARE
Alexandria Real Estate Equities
$51.45
VS
QCOM
QUALCOMM Incorporated
$147.61

Rewards

ARE
  • ★Gross margin of 68.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
QCOM
  • ★QUALCOMM Incorporated has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★QUALCOMM Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
  • ★Free cash flow has grown at a 23.3% CAGR over the past 4 years, demonstrating strong earnings power growth.

Risks

ARE
  • ⚠PEG ratio of 3.24 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Net debt/EBITDA of 6.7x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠Altman Z-Score of 0.10 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
QCOM
  • ⚠FCF yield of 6.6% suggests reasonable valuation assuming continued moderate growth.

Key Valuation Metrics

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ARE
QCOM
Valuation
$1.41B
Free Cash Flow
$10.24B
N/A
FCF Yield
6.61%
N/A
Trailing P/E
16.87
-58.47
Forward P/E
14.34
Quality & Moat
1.14%
ROIC
15.03%
-4.14%
ROE
33.75%
68.59%
Gross Margin
54.23%
3.24
PEG Ratio
0.63
Balance Sheet Safety
0.64
Net Debt / Equity
0.25
N/A
Interest Coverage
N/A
6.70
Net Debt / EBITDA
0.58
5.60%
Dividend Yield
2.49%
ARE: 3Ties: 1QCOM: 6
AREQCOM

Historical Fundamentals

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ARE

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.

QCOM

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

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ARE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-3.66B
Δ Market Cap
$-96.73
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
QCOM
$5.06
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$11.96B
Δ Market Cap
+$60.46B
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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ARE
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $51.45
Fair Value: $9106274826.16
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
QCOM
84.2% Overvalued
Price is 84.2% above estimated fair value
Current Price: $147.61
Fair Value: $80.13
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ARE

What growth rate is the market pricing in at $51?

-3.6%
Market-Implied FCF Growth Rate

Market below historical growth — potential opportunity.

QCOM

What growth rate is the market pricing in at $148?

+11.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.5%

The market implies +11.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +4.5%, reflecting heavy growth investment.

Economic Moat Score

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ARE
50/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.

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.
QCOM
73/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by reinvestment efficiency. Revenue Predictability is the area most vulnerable to competitive pressure.

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.

Forensic Accounting

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ARE
-2.80
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.
QCOM
-3.16
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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ARE
Insiders 1.4%Institutions 97.0%Retail & Other 1.7%
No. of Institutional Holders869
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.
QCOM
Insiders 0.1%Institutions 84.5%Retail & Other 15.4%
No. of Institutional Holders3,722
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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ARE
1
Buys (3M)
6
Buys (12M)
Total value (12M): $2.71M
MARCUS JOEL S
Officer and Director
$347,558
@ $46.34 · 2026-05-06
MARCUS JOEL S
Officer and Director
$320,416
@ $42.72 · 2026-05-05
MARCUS JOEL S
Officer and Director
$410,200
@ $41.02 · 2026-05-04
THOMAS GREGORY CALVIN
Chief Technology Officer
$143,500
@ $41.00 · 2026-04-30
MARCUS JOEL S
Officer and Director
$1.35M
@ $53.92 · 2026-02-12
MCGRATH SHEILA K.
Director
$141,360
@ $45.60 · 2025-12-10
Open market purchases · includes direct & indirect ownership · excludes option exercises
QCOM
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
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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ARE
1
Sells (3M)
4
Sells (12M)
Total value (12M): $546,506
BINDA MARC E.
Chief Financial Officer
$108,000
@ $54.00 · 2026-06-09
KUHN HALLIE E.
Officer
$25,835
@ $48.20 · 2026-04-17
GOSSETT BRET E.
Officer
$251,792
@ $53.55 · 2026-02-27
ALSBROOK MADELEINE THORP
Officer
$160,879
@ $46.15 · 2025-12-16
ALSBROOK MADELEINE THORP
Officer
$446,202
@ $102.34 · 2024-12-16
MOGLIA PETER M
Chief Executive Officer
$1.02M
@ $102.26 · 2024-12-16
RYAN DANIEL J
Officer
$1.03M
@ $103.31 · 2024-12-11
GAVINET ANDRES
Officer
$2.09M
@ $104.29 · 2024-12-11
KASS HUNTER
President
$530,650
@ $106.13 · 2024-12-09
CAIN JAMES P
Director
$42,456
@ $124.87 · 2024-09-16
CIRUZZI VINCENT R. JR
Officer
$855,756
@ $123.29 · 2024-09-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
QCOM
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
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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ARE
FearGreed
😨Fear(39/100)

"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.
QCOM
FearGreed
😨Fear(27/100)

"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.

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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ARE
⚪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 (39)
QCOM
⚪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 (27)
View ARE Full AnalysisView QCOM Full Analysis

Frequently Asked Questions: ARE vs QCOM

Is Alexandria Real Estate Equities or QUALCOMM Incorporated more undervalued in 2026?▼

Based on our discounted cash flow model, ARE trades at a 100.0% margin of safety (intrinsic value $9106274826 vs. price $51), compared to QCOM's -15.8% margin of safety (intrinsic $127 vs. $148).

Which stock has a wider economic moat, Alexandria Real Estate Equities or QUALCOMM Incorporated?▼

QCOM scores 73/100 (Wide moat), while ARE scores 50/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Alexandria Real Estate Equities in financial distress?▼

ARE's Altman Z-Score of 0.1 places it in the Distress zone, signaling elevated bankruptcy risk. QCOM scores 6.5 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Alexandria Real Estate Equities or QUALCOMM Incorporated?▼

QCOM earns 15.0% ROIC versus ARE's 1.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Alexandria Real Estate Equities's or QUALCOMM Incorporated's?▼

QCOM's dividend earns a safety score of 84/100 (Very Safe), compared to ARE's 59/100 (Borderline). QCOM has raised its dividend for 3 consecutive years.

ARE vs QCOM: Which Is the Better Buy in 2026? | SafetyMargin.io