Ingersoll Rand Inc. (IR) vs QUALCOMM Incorporated (QCOM): Which Is the Better Buy in 2026?
As of 2026-08-03, IR is undervalued at $83, with a DCF intrinsic value of $18513221898 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, IR has the wider margin of safety.
Rewards
- ★Free cash flow has grown at a 16.8% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Trailing P/E of 34.5x is 20% below the historical average of 43.3x — potentially undervalued relative to its own history.
- ★PEG ratio of 0.80 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
- ★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
- ⚠Each dollar of retained earnings has produced only $0.05 of earning power — shareholders may have been better served by dividends.
- ⚠Altman Z-Score of 1.07 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠14 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.
- ⚠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
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 $83?
The market implies -16.1% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -18.7%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $148?
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
Learn more →Narrow moat with reinvestment efficiency as the key competitive advantage. Improving roic consistency would strengthen the moat.
Wide moat driven primarily by reinvestment efficiency. Revenue Predictability is the area most vulnerable to competitive pressure.
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 pricing this stock without strong emotion in either direction"
"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: IR vs QCOM
Is Ingersoll Rand Inc. or QUALCOMM Incorporated more undervalued in 2026?▼
Based on our discounted cash flow model, IR trades at a 100.0% margin of safety (intrinsic value $18513221898 vs. price $83), compared to QCOM's -15.8% margin of safety (intrinsic $127 vs. $148).
Which stock has a wider economic moat, Ingersoll Rand Inc. or QUALCOMM Incorporated?▼
QCOM scores 73/100 (Wide moat), while IR scores 59/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Ingersoll Rand Inc. in financial distress?▼
IR's Altman Z-Score of 1.1 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, Ingersoll Rand Inc. or QUALCOMM Incorporated?▼
QCOM earns 15.0% ROIC versus IR's 7.0%. 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, Ingersoll Rand Inc.'s or QUALCOMM Incorporated's?▼
IR's dividend earns a safety score of 85/100 (Very Safe), compared to QCOM's 84/100 (Very Safe). IR has raised its dividend for 0 consecutive years.