Jabil Inc. (JBL) vs Meta Platforms, Inc. (META): Which Is the Better Buy in 2026?
As of 2026-09-17, JBL is undervalued at $298, with a DCF intrinsic value of $601 and a margin of safety of 50%. META is fairly valued at $675, with an intrinsic value of $647 and a margin of safety of -4%. Of the two, JBL has the wider margin of safety.
Rewards
- ★Jabil Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Jabil Inc. scores 83/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
- ★Free cash flow has grown at a 63.9% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Meta Platforms, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 81.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Meta Platforms, Inc. scores 80/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
Risks
- ⚠Gross margin of 9.2% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠Trailing P/E of 37.3x is 84% above the historical average of 20.3x — the stock trades at a premium to its own history.
- ⚠High leverage (1.95x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
- ⚠FCF yield of 2.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠5 insider sales totaling $7.8M with no purchases in the past 3 months — insiders are reducing their exposure.
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 $298?
The market implies +16.9% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +12.3%, reflecting heavy growth investment.
What growth rate is the market pricing in at $675?
The market implies +12.7% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +16.4%, reflecting heavy growth investment expected to generate future returns.
Economic Moat Score
Learn more →Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
Wide moat driven primarily by roic consistency. Reinvestment Efficiency 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 pessimistic — investigate whether fears are temporary or structural"
"Market is optimistic — be cautious and ensure you have a margin of safety"
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: JBL vs META
Is Jabil Inc. or Meta Platforms, Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, JBL trades at a 50.3% margin of safety (intrinsic value $601 vs. price $298), compared to META's -4.2% margin of safety (intrinsic $647 vs. $675).
Which stock has a wider economic moat, Jabil Inc. or Meta Platforms, Inc.?▼
JBL scores 83/100 (Wide moat), while META scores 80/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Which company has better free cash flow, Jabil Inc. or Meta Platforms, Inc.?▼
Jabil Inc. (JBL) generates a 3.9% free cash flow yield, compared to Meta Platforms, Inc.'s 2.7%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Jabil Inc. or Meta Platforms, Inc.?▼
JBL earns 26.2% ROIC versus META's 16.8%. 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, Jabil Inc.'s or Meta Platforms, Inc.'s?▼
META's dividend earns a safety score of 88/100 (Very Safe), compared to JBL's 85/100 (Very Safe). META has raised its dividend for 1 consecutive years.