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Compare Stocks › EIX vs GOOGL

Edison International (EIX) vs Alphabet Inc. (GOOGL): Which Is the Better Buy in 2026?

As of 2026-06-19, EIX is undervalued at $72, with a DCF intrinsic value of $132 and a margin of safety of 46%. GOOGL is overvalued at $368, with an intrinsic value of $94 and a margin of safety of -290%. Of the two, EIX has the wider margin of safety.

EIX
Edison International
$71.89
VS
GOOGL
Alphabet Inc.
$368.03

Rewards

EIX
  • ★Each dollar of retained earnings has created $11.43 of earning power — management is an exceptional capital allocator.
  • ★Management has timed buybacks well — 3 out of 3 years showed value-accretive repurchases.
  • ★Trailing P/E of 7.8x is 66% below the historical average of 22.9x — potentially undervalued relative to its own history.
GOOGL
  • ★Alphabet Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 60.4% 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

EIX
  • ⚠Edison International scores only 27/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
  • ⚠Despite buyback spending, shares outstanding increased in 3 out of 3 years — share issuance is offsetting repurchases.
  • ⚠PEG ratio of 3.40 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
GOOGL
  • ⚠FCF yield of 1.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.

Key Valuation Metrics

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EIX
GOOGL
Valuation
$-1.13B
Free Cash Flow
$73.27B
-4.10%
FCF Yield
1.63%
7.81
Trailing P/E
28.09
11.04
Forward P/E
25.39
Quality & Moat
6.92%
ROIC
20.98%
18.86%
ROE
38.88%
58.68%
Gross Margin
60.37%
3.40
PEG Ratio
1.47
Balance Sheet Safety
2.25
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
4.96
Net Debt / EBITDA
-0.19
4.87%
Dividend Yield
0.24%
EIX: 3Ties: 2GOOGL: 7
EIXGOOGL

Historical Fundamentals

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EIX

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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EIX
$-0.32
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$3.77B
Δ Market Cap
$-1.22B
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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EIX
45.7% Margin of Safety
Price is 45.7% below estimated fair value
Current Price: $71.89
Fair Value: $132.30
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
GOOGL
289.6% Overvalued
Price is 289.6% above estimated fair value
Current Price: $368.03
Fair Value: $94.46
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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EIX

Requires positive FCF to compute implied growth rate.

GOOGL

What growth rate is the market pricing in at $368?

+22.9%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

Economic Moat Score

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EIX
27/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though revenue predictability 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 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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EIX
-2.70
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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EIX
Insiders 0.3%Institutions 94.3%Retail & Other 5.5%
No. of Institutional Holders1,474
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 1.2%Institutions 80.8%Retail & Other 18.1%
No. of Institutional Holders7,263
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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EIX
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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EIX
1
Sells (3M)
6
Sells (12M)
Total value (12M): $1.43M
TAYLOR PETER J
Director
$37,650
@ $75.30 · 2026-04-13
ANDERSON JILL CHARLOTTE
Officer
$514,088
@ $74.67 · 2026-03-02
TAYLOR PETER J
Director
$37,270
@ $74.54 · 2026-03-02
BOWMAN ERICA S
Officer
$94,264
@ $73.87 · 2026-02-23
TAYLOR PETER J
Director
$99,486
@ $55.27 · 2025-10-30
MURPHY J ANDREW
Officer
$647,560
@ $54.42 · 2025-08-04
BELIVEAU-DUNN JEANNE
Director
$178,666
@ $54.34 · 2025-03-06
TAYLOR PETER J
Director
$104,100
@ $83.28 · 2024-11-15
UMANOFF ADAM S
General Counsel
$2.13M
@ $83.05 · 2024-10-31
MURPHY J ANDREW
Officer
$2.04M
@ $85.45 · 2024-08-26
MURPHY J ANDREW
Officer
$115,770
@ $85.00 · 2024-08-23
SCHILLING NATALIE K
Officer
$187,285
@ $80.00 · 2024-07-31
MURPHY J ANDREW
Officer
$2.60M
@ $80.12 · 2024-07-31
MURPHY J ANDREW
Officer
$2.27M
@ $78.43 · 2024-07-26
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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EIX
FearGreed
😏Greed(62/100)

"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.
GOOGL
FearGreed
😐Neutral(58/100)

"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.

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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EIX
⚪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 (62)
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: Neutral (58)
View EIX Full AnalysisView GOOGL Full Analysis

Frequently Asked Questions: EIX vs GOOGL

Is Edison International or Alphabet Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, EIX trades at a 45.7% margin of safety (intrinsic value $132 vs. price $72), compared to GOOGL's -289.6% margin of safety (intrinsic $94 vs. $368).

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

GOOGL scores 89/100 (Wide moat), while EIX scores 27/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Edison International in financial distress?▼

EIX's Altman Z-Score of 0.7 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, Edison International or Alphabet Inc.?▼

Alphabet Inc. (GOOGL) generates a 1.6% free cash flow yield, compared to Edison International's -4.1%. 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, Edison International or Alphabet Inc.?▼

GOOGL earns 21.0% ROIC versus EIX's 6.9%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Edison International's or Alphabet Inc.'s?▼

GOOGL's dividend earns a safety score of 88/100 (Very Safe), compared to EIX's 79/100 (Safe). GOOGL has raised its dividend for 1 consecutive years.