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Exelon Corporation (EXC) vs Pfizer, Inc. (PFE): Which Is the Better Buy in 2026?

As of 2026-08-03, EXC is overvalued at $46, with a DCF intrinsic value of $4 and a margin of safety of -1166%. PFE is undervalued at $25, with an intrinsic value of $127985960274 and a margin of safety of 100%. Of the two, PFE has the wider margin of safety.

EXC
Exelon Corporation
$45.82
VS
PFE
Pfizer, Inc.
$25.01

Rewards

EXC
  • ★Each dollar of retained earnings has created $2.23 of earning power — management is an exceptional capital allocator.
PFE
  • ★Gross margin of 74.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Trailing P/E of 19.1x is 37% below the historical average of 30.4x — potentially undervalued relative to its own history.

Risks

EXC
  • ⚠PEG ratio of 2.64 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠High leverage (1.71x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Net debt/EBITDA of 6.1x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
PFE
  • ⚠ROIC has declined by 15.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠PEG ratio of 2.94 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Altman Z-Score of 1.38 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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EXC
PFE
Valuation
$-2.69B
Free Cash Flow
$12.38B
-5.69%
FCF Yield
N/A
16.85
Trailing P/E
19.09
15.08
Forward P/E
8.85
Quality & Moat
4.03%
ROIC
10.19%
9.71%
ROE
8.31%
42.36%
Gross Margin
74.80%
2.64
PEG Ratio
2.94
Balance Sheet Safety
1.71
Net Debt / Equity
0.57
N/A
Interest Coverage
N/A
6.09
Net Debt / EBITDA
2.03
3.67%
Dividend Yield
6.88%
EXC: 3Ties: 1PFE: 7
EXCPFE

Historical Fundamentals

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EXC

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.

PFE

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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EXC
$0.54
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$2.98B
Δ Market Cap
+$1.60B
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
PFE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-10.61B
Δ Market Cap
$-26.34
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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EXC
1166.2% Overvalued
Price is 1166.2% above estimated fair value
Current Price: $45.82
Fair Value: $3.62
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
PFE
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $25.01
Fair Value: $127985960274.09
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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EXC

Requires positive FCF to compute implied growth rate.

PFE

What growth rate is the market pricing in at $25?

-14.2%
Market-Implied Owner Earnings Growth
Standard FCF implies -15.0%

The market implies -14.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding -15.0%, reflecting heavy growth investment.

Economic Moat Score

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EXC
49/100
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.
PFE
35/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency 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 5 years of fundamental data.

Forensic Accounting

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EXC
-2.46
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.
PFE
-2.53
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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EXC
Insiders 0.1%Institutions 94.7%Retail & Other 5.2%
No. of Institutional Holders1,764
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.
PFE
Insiders 0.1%Institutions 69.5%Retail & Other 30.4%
No. of Institutional Holders3,661
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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EXC
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
PFE
0
Buys (3M)
0
Buys (12M)
BLAYLOCK RONALD E
Director
$499,072
@ $25.65 · 2025-02-13
GOTTLIEB SCOTT
Director
$28,240
@ $28.24 · 2024-10-30
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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EXC
0
Sells (3M)
0
Sells (12M)
GLOCKNER DAVID
Officer
$245,489
@ $40.57 · 2025-02-03
HONORABLE COLETTE D.
Officer
$59,354
@ $40.57 · 2025-02-03
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
PFE
1
Sells (3M)
1
Sells (12M)
Total value (12M): $51,400
DAMICO JENNIFER B.
Officer
$51,400
@ $25.70 · 2026-06-09
DAMICO JENNIFER B.
Officer
$64,825
@ $25.93 · 2025-03-04
DAMICO JENNIFER B.
Officer
$147,714
@ $28.66 · 2024-08-13
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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EXC
FearGreed
😐Neutral(50/100)

"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.
PFE
FearGreed
😐Neutral(52/100)

"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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EXC
⚪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 (50)
PFE
⚪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 (52)
View EXC Full AnalysisView PFE Full Analysis

Frequently Asked Questions: EXC vs PFE

Is Exelon Corporation or Pfizer, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, PFE trades at a 100.0% margin of safety (intrinsic value $127985960274 vs. price $25), compared to EXC's -1166.2% margin of safety (intrinsic $4 vs. $46).

Which stock has a wider economic moat, Exelon Corporation or Pfizer, Inc.?▼

EXC scores 49/100 (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 Exelon Corporation in financial distress?▼

EXC's Altman Z-Score of 0.7 places it in the Distress zone, signaling elevated bankruptcy risk. PFE scores 1.4 (Distress 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, Exelon Corporation or Pfizer, Inc.?▼

PFE earns 10.2% ROIC versus EXC's 4.0%. 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, Exelon Corporation's or Pfizer, Inc.'s?▼

EXC's dividend earns a safety score of 69/100 (Safe), compared to PFE's 24/100 (Unsafe). EXC has raised its dividend for 3 consecutive years.

EXC vs PFE: Which Is the Better Buy in 2026? | SafetyMargin.io