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Compare Stocks › EL vs ORCL

The Estée Lauder Companies Inc. (EL) vs Oracle Corporation (ORCL): Which Is the Better Buy in 2026?

As of 2026-06-19, EL is undervalued at $85, with a DCF intrinsic value of $362 and a margin of safety of 77%. ORCL is undervalued at $184, with an intrinsic value of $285 and a margin of safety of 35%. Of the two, EL has the wider margin of safety.

EL
The Estée Lauder Companies Inc.
$84.81
VS
ORCL
Oracle Corporation
$184.29

Rewards

EL
  • ★Gross margin of 74.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
ORCL
  • ★Oracle Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 65.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Return on equity has consistently exceeded 20% over 3 years, indicating efficient use of shareholder capital.

Risks

EL
  • ⚠ROIC has declined by 15.4 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Despite buyback spending, shares outstanding increased in 3 out of 4 years — stock-based compensation is offsetting repurchases.
  • ⚠FCF yield of 5.9% suggests reasonable valuation assuming continued moderate growth.
ORCL
  • ⚠Despite buyback spending, shares outstanding increased in 3 out of 4 years — stock-based compensation is offsetting repurchases.
  • ⚠High leverage (2.89x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Insiders have sold $2.6M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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EL
ORCL
Valuation
$1.81B
Free Cash Flow
$-20.34B
5.89%
FCF Yield
-3.84%
N/A
Trailing P/E
31.56
26.63
Forward P/E
16.89
Quality & Moat
13.16%
ROIC
9.68%
-5.95%
ROE
53.38%
74.65%
Gross Margin
65.82%
1.42
PEG Ratio
1.06
Balance Sheet Safety
1.55
Net Debt / Equity
2.89
N/A
Interest Coverage
N/A
2.63
Net Debt / EBITDA
3.92
1.70%
Dividend Yield
1.09%
EL: 7Ties: 1ORCL: 3
ELORCL

Historical Fundamentals

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EL

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.

ORCL

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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EL
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-2.23B
Δ Market Cap
$-50.91B
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
ORCL
$17.69
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$18.61B
Δ Market Cap
+$329.28B
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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EL
76.6% Margin of Safety
Price is 76.6% below estimated fair value
Current Price: $84.81
Fair Value: $362.42
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
ORCL
35.4% Margin of Safety
Price is 35.4% below estimated fair value
Current Price: $184.29
Fair Value: $285.39
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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EL

What growth rate is the market pricing in at $85?

+8.0%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

ORCL

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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EL
36/100
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.
ORCL
68/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability 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.

Forensic Accounting

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EL
-2.75
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.
ORCL
-2.57
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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EL
Insiders 0.4%Institutions 97.2%Retail & Other 2.4%
No. of Institutional Holders1,317
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.
ORCL
Insiders 40.5%Institutions 44.0%Retail & Other 15.5%
No. of Institutional Holders4,512
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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EL
0
Buys (3M)
0
Buys (12M)
FRIBOURG PAUL J
Director
$2.96M
@ $65.00 · 2025-02-07
FRIBOURG PAUL J
Director
$5.72M
@ $65.80 · 2025-02-06
SHRIVASTAVA AKHIL
Chief Financial Officer
$46,053
@ $65.79 · 2025-02-05
FRIBOURG PAUL J
Director
$5.02M
@ $64.48 · 2024-11-19
FRIBOURG PAUL J
Director
$9.86M
@ $64.46 · 2024-11-18
FRIBOURG PAUL J
Director
$10.05M
@ $63.98 · 2024-11-14
SHRIVASTAVA AKHIL
Chief Financial Officer
$65,000
@ $65.00 · 2024-11-14
Open market purchases · includes direct & indirect ownership · excludes option exercises
ORCL
0
Buys (3M)
1
Buys (12M)
Total value (12M): $112,258
FAIRHEAD RONA ALISON
Director
$112,258
@ $233.87 · 2025-07-07
MOORMAN CHARLES W IV
Director
$947,913
@ $172.35 · 2025-02-12
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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EL
0
Sells (3M)
10
Sells (12M)
Total value (12M): $1.02B
LA LANDE RASHIDA K
General Counsel
$151,498
@ $94.45 · 2025-11-26
LAUDER JANE A
Director and Beneficial Owner of more than 10% of a Class of Security
$1.68M
@ $94.38 · 2025-11-26
WEBSTER MERIDITH P
Officer
$476,971
@ $87.84 · 2025-11-18
STERNLICHT BARRY S
Director
$364,749
@ $91.83 · 2025-11-11
LAL 2015 ELF TRUST
Trustee
$508.60M
@ $89.70 · 2025-11-06
EVELYN H. LAUDER 2012 MARITAL TRUST TWO
Trustee
$255.22M
@ $89.70 · 2025-11-06
LEONARD A LAUDER 2013 REVOCABLE TRUST
Beneficial Owner of more than 10% of a Class of Security
$249.91M
@ $89.70 · 2025-11-06
FORESTER LYNN
Director
$339,288
@ $91.65 · 2025-08-29
LA LANDE RASHIDA K
General Counsel
$589,594
@ $91.88 · 2025-08-28
LAUDER JANE A
Director and Beneficial Owner of more than 10% of a Class of Security
$1.39M
@ $88.23 · 2025-08-21
FREDA FABRIZIO
Chief Executive Officer
$743,259
@ $67.76 · 2024-11-01
FORESTER LYNN
Director
$364,143
@ $93.61 · 2024-08-23
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
ORCL
1
Sells (3M)
19
Sells (12M)
Total value (12M): $1.89B
LEVEY STUART A
Officer
$2.64M
@ $176.19 · 2026-04-16
MAGOUYRK CLAYTON M
Chief Executive Officer
$1.55M
@ $155.23 · 2026-02-09
KEHRING DOUGLAS A
Officer
$6.82M
@ $194.89 · 2026-01-15
HURA MARK
Officer
$2.95M
@ $196.89 · 2025-12-24
SELIGMAN NAOMI O
Director
$437,064
@ $196.61 · 2025-12-23
MAGOUYRK CLAYTON M
Chief Executive Officer
$1.93M
@ $192.52 · 2025-12-19
SMITH MARIA
Officer
$2.80M
@ $280.31 · 2025-10-23
MAGOUYRK CLAYTON M
Chief Executive Officer
$11.07M
@ $276.64 · 2025-10-21
LEVEY STUART A
Officer
$5.93M
@ $300.00 · 2025-10-10
SELIGMAN NAOMI O
Director
$641,958
@ $288.91 · 2025-09-26
SICILIA MICHAEL D
Officer
$10.87M
@ $321.16 · 2025-09-23
SICILIA MICHAEL D
Officer
$5.12M
@ $313.60 · 2025-09-16
MAGOUYRK CLAYTON M
President
$6.31M
@ $297.11 · 2025-09-12
SICILIA MICHAEL D
Officer
$4.04M
@ $254.48 · 2025-08-05
SELIGMAN NAOMI O
Director
$770,656
@ $233.32 · 2025-07-16
SMITH MARIA
Officer
$2.33M
@ $232.99 · 2025-07-03
CATZ SAFRA A
Chief Executive Officer
$267.24M
@ $212.01 · 2025-06-27
CATZ SAFRA A
Chief Executive Officer
$794.64M
@ $212.50 · 2025-06-26
CATZ SAFRA A
Chief Executive Officer
$764.01M
@ $206.77 · 2025-06-23
CONRADES GEORGE HENRY
Director
$1.74M
@ $213.49 · 2025-06-17
MAGOUYRK CLAYTON M
Officer
$3.21M
@ $214.10 · 2025-06-17
SELIGMAN NAOMI O
Director
$428,562
@ $149.53 · 2025-05-05
SELIGMAN NAOMI O
Director
$291,620
@ $145.81 · 2025-04-02
CATZ SAFRA A
Chief Executive Officer
$705.46M
@ $185.40 · 2025-01-24
SMITH MARIA
Officer
$1.04M
@ $165.00 · 2024-09-16
ELLISON LAWRENCE JOSEPH
Chief Technology Officer
$322.05M
@ $143.13 · 2024-07-16
SCREVEN EDWARD LLOYD
Officer
$60.58M
@ $141.91 · 2024-07-10
SCREVEN EDWARD LLOYD
Officer
$5.22M
@ $140.19 · 2024-06-26
SCREVEN EDWARD LLOYD
Officer
$34.04M
@ $144.30 · 2024-06-20
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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EL
FearGreed
😨Fear(37/100)

"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.
ORCL
FearGreed
😨Fear(32/100)

"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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EL
⚪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 (37)
ORCL
⚪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 (32)
View EL Full AnalysisView ORCL Full Analysis

Frequently Asked Questions: EL vs ORCL

Is The Estée Lauder Companies Inc. or Oracle Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, EL trades at a 76.6% margin of safety (intrinsic value $362 vs. price $85), compared to ORCL's 35.4% margin of safety (intrinsic $285 vs. $184).

Which stock has a wider economic moat, The Estée Lauder Companies Inc. or Oracle Corporation?▼

ORCL scores 68/100 (Narrow moat), while EL scores 36/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Oracle Corporation in financial distress?▼

ORCL's Altman Z-Score of 2.7 places it in the Grey zone, signaling elevated bankruptcy risk. EL scores 3.2 (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 company has better free cash flow, The Estée Lauder Companies Inc. or Oracle Corporation?▼

The Estée Lauder Companies Inc. (EL) generates a 5.9% free cash flow yield, compared to Oracle Corporation's -3.8%. 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, The Estée Lauder Companies Inc. or Oracle Corporation?▼

EL earns 13.2% ROIC versus ORCL's 9.7%. 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, The Estée Lauder Companies Inc.'s or Oracle Corporation's?▼

ORCL's dividend earns a safety score of 79/100 (Safe), compared to EL's 35/100 (Unsafe). ORCL has raised its dividend for 3 consecutive years.