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DaVita Inc. (DVA) vs Alphabet Inc. (GOOGL): Which Is the Better Buy in 2026?

As of 2026-11-01, DVA is undervalued at $188, with a DCF intrinsic value of $277 and a margin of safety of 32%. GOOGL is overvalued at $280, with an intrinsic value of $8 and a margin of safety of -3448%. Of the two, DVA has the wider margin of safety.

DVA
DaVita Inc.
$187.50
VS
GOOGL
Alphabet Inc.
$279.84

Rewards

DVA
  • ★DaVita Inc. scores 75/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Free cash flow has grown at a 10.9% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Return on equity has consistently exceeded 20% over 3 years, indicating efficient use of shareholder capital.
GOOGL
  • ★Alphabet Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 60.9% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Alphabet Inc. scores 89/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

DVA
  • ⚠High leverage (11.39x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Net debt/EBITDA of 4.5x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠Altman Z-Score of 1.48 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
GOOGL

    Key Valuation Metrics

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    DVA
    GOOGL
    Valuation
    $1.31B
    Free Cash Flow
    $-1.16B
    11.11%
    FCF Yield
    -0.03%
    14.19
    Trailing P/E
    14.61
    11.08
    Forward P/E
    18.49
    Quality & Moat
    11.92%
    ROIC
    14.30%
    96.79%
    ROE
    44.29%
    32.28%
    Gross Margin
    60.86%
    0.46
    PEG Ratio
    0.98
    Balance Sheet Safety
    11.39
    Net Debt / Equity
    Net cash
    N/A
    Interest Coverage
    N/A
    4.51
    Net Debt / EBITDA
    -0.62
    0.00%
    Dividend Yield
    0.31%
    DVA: 5Ties: 2GOOGL: 5
    DVAGOOGL

    Historical Fundamentals

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    DVA

    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.

    GOOGL

    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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    DVA
    $0.44
    created per $1 retained over 3 years
    Value Destroyer
    Σ Retained
    $2.37B
    Δ Market Cap
    +$1.04B
    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
    GOOGL
    $9.18
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $288.67B
    Δ Market Cap
    +$2.65T
    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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    DVA
    32.3% Margin of Safety
    Price is 32.3% below estimated fair value
    Current Price: $187.50
    Fair Value: $276.99
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    GOOGL
    3447.8% Overvalued
    Price is 3447.8% above estimated fair value
    Current Price: $279.84
    Fair Value: $7.89
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    DVA

    What growth rate is the market pricing in at $188?

    +12.2%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +6.9%

    The market implies +12.2% Owner Earnings growth, roughly in line with history — reasonably priced.

    Standard FCF implies +6.9%, reflecting ongoing growth investment.

    GOOGL

    Requires positive FCF to compute implied growth rate.

    Economic Moat Score

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    DVA
    75/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by revenue predictability. ROIC Consistency 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.
    GOOGL
    89/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by roic consistency. Reinvestment Efficiency 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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    DVA
    -2.69
    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.
    GOOGL
    -2.92
    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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    DVA
    Insiders 47.0%Institutions 49.1%Retail & Other 3.9%
    No. of Institutional Holders873
    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.
    GOOGL
    Insiders 1.6%Institutions 80.8%Retail & Other 17.6%
    No. of Institutional Holders7,451
    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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    DVA
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    GOOGL
    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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    DVA
    0
    Sells (3M)
    6
    Sells (12M)
    Total value (12M): $35.01M
    RODRIGUEZ JAVIER J
    Chief Executive Officer
    $14.53M
    @ $209.38 · 2026-06-16
    WATERS KATHLEEN ALYCE
    Officer
    $3.21M
    @ $208.40 · 2026-06-15
    HEARTY JAMES O
    Officer
    $2.91M
    @ $193.98 · 2026-05-15
    MAUGHAN DAVID PAUL
    Officer
    $4.09M
    @ $199.22 · 2026-05-12
    ACKERMAN JOEL
    Chief Financial Officer
    $9.89M
    @ $192.10 · 2026-05-07
    HEARTY JAMES O
    Officer
    $381,916
    @ $174.87 · 2026-05-06
    HEARTY JAMES O
    Officer
    $352,650
    @ $150.00 · 2025-07-23
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    GOOGL
    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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    DVA
    FearGreed
    😐Neutral(41/100)

    "Market is pricing this stock without strong emotion in either direction"

    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.
    GOOGL
    FearGreed
    😨Fear(23/100)

    "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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    DVA
    ⚪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: Neutral (41)
    GOOGL
    ⚪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 (23)
    View DVA Full AnalysisView GOOGL Full Analysis

    Frequently Asked Questions: DVA vs GOOGL

    Is DaVita Inc. or Alphabet Inc. more undervalued in 2026?▼

    Based on our discounted cash flow model, DVA trades at a 32.3% margin of safety (intrinsic value $277 vs. price $188), compared to GOOGL's -3447.8% margin of safety (intrinsic $8 vs. $280).

    Which stock has a wider economic moat, DaVita Inc. or Alphabet Inc.?▼

    GOOGL scores 89/100 (Wide moat), while DVA scores 75/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is DaVita Inc. in financial distress?▼

    DVA's Altman Z-Score of 1.5 places it in the Distress zone, signaling elevated bankruptcy risk. GOOGL 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, DaVita Inc. or Alphabet Inc.?▼

    DaVita Inc. (DVA) generates a 11.1% free cash flow yield, compared to Alphabet Inc.'s -0.0%. 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, DaVita Inc. or Alphabet Inc.?▼

    GOOGL earns 14.3% ROIC versus DVA's 11.9%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.