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International Paper Company (IP) vs QUALCOMM Incorporated (QCOM): Which Is the Better Buy in 2026?

As of 2026-08-03, IP is undervalued at $41, with a DCF intrinsic value of $124527309897 and a margin of safety of 100%. QCOM is overvalued at $148, with an intrinsic value of $127 and a margin of safety of -16%. Of the two, IP has the wider margin of safety.

IP
International Paper Company
$40.83
VS
QCOM
QUALCOMM Incorporated
$147.61

Rewards

IP
    QCOM
    • ★QUALCOMM Incorporated has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
    • ★QUALCOMM Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
    • ★Free cash flow has grown at a 23.3% CAGR over the past 4 years, demonstrating strong earnings power growth.

    Risks

    IP
    • ⚠ROIC has declined by 9.7 percentage points over the past 4 years, which may signal competitive erosion.
    • ⚠International Paper Company scores only 17/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
    • ⚠Altman Z-Score of 0.87 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
    QCOM
    • ⚠FCF yield of 6.6% suggests reasonable valuation assuming continued moderate growth.
    • ⚠15 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

    Key Valuation Metrics

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    IP
    QCOM
    Valuation
    $1.76B
    Free Cash Flow
    $10.24B
    N/A
    FCF Yield
    6.61%
    N/A
    Trailing P/E
    16.87
    13.89
    Forward P/E
    14.34
    Quality & Moat
    1.71%
    ROIC
    15.03%
    -16.48%
    ROE
    33.75%
    29.61%
    Gross Margin
    54.23%
    1.58
    PEG Ratio
    0.63
    Balance Sheet Safety
    0.62
    Net Debt / Equity
    0.25
    N/A
    Interest Coverage
    N/A
    2.34
    Net Debt / EBITDA
    0.58
    4.53%
    Dividend Yield
    2.49%
    IP: 1Ties: 2QCOM: 7
    IPQCOM

    Historical Fundamentals

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    IP

    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.

    QCOM

    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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    IP
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-4.93B
    Δ Market Cap
    +$4.76
    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
    QCOM
    $5.06
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $11.96B
    Δ Market Cap
    +$60.46B
    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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    IP
    100.0% Margin of Safety
    Price is 100.0% below estimated fair value
    Current Price: $40.83
    Fair Value: $124527309897.42
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    QCOM
    84.2% Overvalued
    Price is 84.2% above estimated fair value
    Current Price: $147.61
    Fair Value: $80.13
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    IP

    What growth rate is the market pricing in at $41?

    -11.8%
    Market-Implied FCF Growth Rate

    Market roughly matching historical growth — reasonable.

    QCOM

    What growth rate is the market pricing in at $148?

    +11.9%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +4.5%

    The market implies +11.9% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +4.5%, reflecting heavy growth investment.

    Economic Moat Score

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    IP
    17/100
    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 4 years of fundamental data.
    QCOM
    73/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by reinvestment efficiency. Revenue Predictability 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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    IP
    -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.
    QCOM
    -3.16
    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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    IP
    Insiders 0.2%Institutions 99.5%Retail & Other 0.2%
    No. of Institutional Holders1,181
    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.
    QCOM
    Insiders 0.1%Institutions 84.5%Retail & Other 15.4%
    No. of Institutional Holders3,722
    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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    IP
    0
    Buys (3M)
    4
    Buys (12M)
    Total value (12M): $4.32M
    TOZIER SCOTT A
    Director
    $313,009
    @ $31.30 · 2026-05-01
    GUSTAFSSON PER ANDERS
    Director
    $1.00M
    @ $38.33 · 2026-03-12
    SILVERNAIL ANDREW K.
    Chief Executive Officer
    $2.00M
    @ $39.98 · 2026-01-30
    CONNOR CHRISTOPHER M
    Director
    $1.01M
    @ $40.37 · 2026-01-30
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    QCOM
    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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    IP
    0
    Sells (3M)
    1
    Sells (12M)
    Total value (12M): $409,815
    SAAB JOSEPH R
    General Counsel
    $409,815
    @ $45.53 · 2025-09-16
    GOUGHNOUR HOLLY G
    Officer
    $336,344
    @ $44.85 · 2025-05-05
    SULLIVAN KATHRYN D.
    Director
    $35,034
    @ $58.39 · 2024-11-29
    SULLIVAN KATHRYN D.
    Director
    $33,714
    @ $56.19 · 2024-11-15
    SULLIVAN KATHRYN D.
    Director
    $32,100
    @ $53.50 · 2024-10-31
    SULLIVAN KATHRYN D.
    Director
    $28,848
    @ $48.08 · 2024-10-15
    SULLIVAN KATHRYN D.
    Director
    $29,208
    @ $48.68 · 2024-09-30
    SULLIVAN KATHRYN D.
    Director
    $29,688
    @ $49.48 · 2024-09-16
    SAAB JOSEPH R
    General Counsel
    $115,412
    @ $47.30 · 2024-09-12
    GOUGHNOUR HOLLY G
    Officer
    $236,100
    @ $47.22 · 2024-09-06
    SULLIVAN KATHRYN D.
    Director
    $28,740
    @ $47.90 · 2024-08-30
    ELLIS CLAYTON R
    Officer
    $439,470
    @ $48.83 · 2024-08-28
    SULLIVAN KATHRYN D.
    Director
    $27,660
    @ $46.10 · 2024-08-15
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    QCOM
    3
    Sells (3M)
    15
    Sells (12M)
    Total value (12M): $12.57M
    PALKHIWALA AKASH J
    Chief Operating Officer
    $452,030
    @ $180.81 · 2026-07-14
    PALKHIWALA AKASH J
    Chief Operating Officer
    $493,380
    @ $197.35 · 2026-06-11
    PALKHIWALA AKASH J
    Chief Operating Officer
    $529,741
    @ $211.90 · 2026-05-12
    PALKHIWALA AKASH J
    Chief Operating Officer
    $325,854
    @ $130.34 · 2026-04-13
    PALKHIWALA AKASH J
    Chief Operating Officer
    $330,815
    @ $132.33 · 2026-03-12
    PALKHIWALA AKASH J
    Chief Operating Officer
    $458,799
    @ $137.65 · 2026-02-06
    PALKHIWALA AKASH J
    Chief Operating Officer
    $577,620
    @ $173.30 · 2026-01-02
    PALKHIWALA AKASH J
    Chief Operating Officer
    $2.20M
    @ $175.29 · 2025-12-19
    ROGERS ALEXANDER H
    Officer
    $2.83M
    @ $178.01 · 2025-12-16
    CHAPLIN ANN C
    General Counsel
    $1.28M
    @ $178.03 · 2025-12-16
    PALKHIWALA AKASH J
    Chief Operating Officer
    $567,702
    @ $170.33 · 2025-11-07
    PALKHIWALA AKASH J
    Chief Operating Officer
    $1.38M
    @ $166.06 · 2025-10-20
    PALKHIWALA AKASH J
    Chief Operating Officer
    $522,808
    @ $156.86 · 2025-09-02
    MARTIN NEIL A
    Officer
    $122,463
    @ $154.82 · 2025-08-21
    PALKHIWALA AKASH J
    Chief Operating Officer
    $493,610
    @ $148.10 · 2025-08-04
    PALKHIWALA AKASH J
    Chief Operating Officer
    $537,560
    @ $161.28 · 2025-07-02
    PALKHIWALA AKASH J
    Chief Operating Officer
    $486,965
    @ $146.10 · 2025-06-02
    MARTIN NEIL A
    Officer
    $120,808
    @ $153.70 · 2025-05-21
    PALKHIWALA AKASH J
    Chief Operating Officer
    $465,846
    @ $139.77 · 2025-05-05
    PALKHIWALA AKASH J
    Chief Operating Officer
    $91,442
    @ $141.11 · 2025-04-09
    PALKHIWALA AKASH J
    Chief Operating Officer
    $119,900
    @ $132.63 · 2025-04-08
    PALKHIWALA AKASH J
    Chief Operating Officer
    $235,262
    @ $132.10 · 2025-04-04
    PALKHIWALA AKASH J
    Chief Operating Officer
    $523,292
    @ $156.82 · 2025-03-03
    MARTIN NEIL A
    Officer
    $130,074
    @ $174.83 · 2025-02-21
    PALKHIWALA AKASH J
    Chief Operating Officer
    $509,397
    @ $169.80 · 2025-02-12
    ROGERS ALEXANDER H
    Officer
    $3.28M
    @ $169.83 · 2025-02-10
    PALKHIWALA AKASH J
    Chief Operating Officer
    $463,851
    @ $154.62 · 2025-01-02
    CHAPLIN ANN C
    General Counsel
    $409,056
    @ $158.12 · 2024-12-16
    ROGERS ALEXANDER H
    Officer
    $1.67M
    @ $160.59 · 2024-12-10
    CHAPLIN ANN C
    General Counsel
    $1.24M
    @ $160.59 · 2024-12-10
    PALKHIWALA AKASH J
    Chief Operating Officer
    $484,617
    @ $161.54 · 2024-12-05
    MARTIN NEIL A
    Officer
    $202,120
    @ $155.00 · 2024-11-21
    PALKHIWALA AKASH J
    Chief Operating Officer
    $491,349
    @ $163.78 · 2024-11-14
    THOMPSON JAMES H.
    Chief Technology Officer
    $1.38M
    @ $172.09 · 2024-11-08
    CHAPLIN ANN C
    General Counsel
    $313,779
    @ $165.06 · 2024-11-04
    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

    Learn more →
    IP
    FearGreed
    😐Neutral(43/100)

    "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.
    QCOM
    FearGreed
    😨Fear(27/100)

    "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

    Learn more →
    IP
    ⚪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 (43)
    QCOM
    ⚪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 (27)
    View IP Full AnalysisView QCOM Full Analysis

    Frequently Asked Questions: IP vs QCOM

    Is International Paper Company or QUALCOMM Incorporated more undervalued in 2026?▼

    Based on our discounted cash flow model, IP trades at a 100.0% margin of safety (intrinsic value $124527309897 vs. price $41), compared to QCOM's -15.8% margin of safety (intrinsic $127 vs. $148).

    Which stock has a wider economic moat, International Paper Company or QUALCOMM Incorporated?▼

    QCOM scores 73/100 (Wide moat), while IP scores 17/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is International Paper Company in financial distress?▼

    IP's Altman Z-Score of 0.9 places it in the Distress zone, signaling elevated bankruptcy risk. QCOM scores 6.5 (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 stock has higher return on invested capital, International Paper Company or QUALCOMM Incorporated?▼

    QCOM earns 15.0% ROIC versus IP's 1.7%. 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, International Paper Company's or QUALCOMM Incorporated's?▼

    QCOM's dividend earns a safety score of 84/100 (Very Safe), compared to IP's 56/100 (Borderline). QCOM has raised its dividend for 3 consecutive years.

    IP vs QCOM: Which Is the Better Buy in 2026? | SafetyMargin.io