General Mills, Inc. (GIS) vs Pfizer, Inc. (PFE): Which Is the Better Buy in 2026?
As of 2026-08-03, GIS is undervalued at $36, with a DCF intrinsic value of $40891580894 and a margin of safety of 100%. 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.
Rewards
- ★General Mills, Inc. scores 80/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
- ★Net debt/EBITDA of -0.1x means the company holds more cash than debt — a net cash position.
- ★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
- ⚠PEG ratio of 11.74 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 1.79 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Free cash flow has declined at a 8.0% CAGR over the past 4 years — a concerning trend.
- ⚠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
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 →What growth rate is the market pricing in at $36?
Market below historical growth — potential opportunity.
What growth rate is the market pricing in at $25?
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
Learn more →Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
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 →"Market is pessimistic — investigate whether fears are temporary or structural"
"Market is pricing this stock without strong emotion in either direction"
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: GIS vs PFE
Is General Mills, Inc. 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 GIS's 100.0% margin of safety (intrinsic $40891580894 vs. $36).
Which stock has a wider economic moat, General Mills, Inc. or Pfizer, Inc.?▼
GIS scores 80/100 (Wide 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 Pfizer, Inc. in financial distress?▼
PFE's Altman Z-Score of 1.4 places it in the Distress zone, signaling elevated bankruptcy risk. GIS scores 1.8 (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 dividend is safer, General Mills, Inc.'s or Pfizer, Inc.'s?▼
GIS's dividend earns a safety score of 35/100 (Unsafe), compared to PFE's 24/100 (Unsafe). GIS has raised its dividend for 0 consecutive years.