Fiserv, Inc. (FISV) vs Oracle Corporation (ORCL): Which Is the Better Buy in 2026?
As of 2026-06-19, FISV is undervalued at $48, with a DCF intrinsic value of $227 and a margin of safety of 79%. ORCL is undervalued at $184, with an intrinsic value of $285 and a margin of safety of 35%. Of the two, FISV has the wider margin of safety.
Rewards
- ★Free cash flow has grown at a 11.1% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Share count has been reduced by 15% over the past 4 years through buybacks, increasing each share's claim on earnings.
- ★Market sentiment is in extreme fear territory (score: 14/100) — historically, periods of fear have often presented buying opportunities.
- ★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
- ⚠Altman Z-Score of 1.38 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠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
Learn more →Historical Fundamentals
Learn more →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.
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
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $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
Learn more →Reverse DCF — Market-Implied Growth
Learn more →Requires positive FCF to compute implied growth rate.
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
Narrow moat with revenue predictability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
Forensic Accounting
Learn more →M-Score Trend
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.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Mr. Market is panicking — potential buying opportunity if fundamentals are strong"
"Market is pessimistic — investigate whether fears are temporary or structural"
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
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: FISV vs ORCL
Is Fiserv, Inc. or Oracle Corporation more undervalued in 2026?▼
Based on our discounted cash flow model, FISV trades at a 78.9% margin of safety (intrinsic value $227 vs. price $48), compared to ORCL's 35.4% margin of safety (intrinsic $285 vs. $184).
Which stock has a wider economic moat, Fiserv, Inc. or Oracle Corporation?▼
ORCL scores 68/100 (Narrow moat), while FISV scores 60/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Fiserv, Inc. in financial distress?▼
FISV's Altman Z-Score of 1.4 places it in the Distress zone, signaling elevated bankruptcy risk. ORCL scores 2.7 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.