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Compare Stocks › LEN vs PFE

Lennar Corporation (LEN) vs Pfizer Inc. (PFE): Which Is the Better Buy in 2026?

As of 2026-06-19, LEN is undervalued at $90, with a DCF intrinsic value of $682 and a margin of safety of 87%. PFE is overvalued at $25, with an intrinsic value of $22 and a margin of safety of -12%. Of the two, LEN has the wider margin of safety.

LEN
Lennar Corporation
$89.73
VS
PFE
Pfizer Inc.
$25.21

Rewards

LEN
  • ★Share count has been reduced by 15% over the past 4 years through buybacks, increasing each share's claim on earnings.
  • ★Altman Z-Score of 4.02 indicates very low bankruptcy risk — the company is firmly in the safe zone.
PFE
  • ★Gross margin of 74.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★FCF yield of 8.6% is historically attractive — the business generates significant cash relative to its price.
  • ★Trailing P/E of 19.2x is 37% below the historical average of 30.4x — potentially undervalued relative to its own history.

Risks

LEN
  • ⚠ROIC has declined by 9.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Gross margin of 16.4% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Trailing P/E of 14.1x is 47% above the historical average of 9.5x — the stock trades at a premium to its own history.
PFE
  • ⚠ROIC has declined by 15.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠PEG ratio of 13.77 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Free cash flow has declined at a 29.6% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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LEN
PFE
Valuation
N/A
Free Cash Flow
$12.38B
N/A
FCF Yield
8.61%
14.06
Trailing P/E
19.24
13.54
Forward P/E
8.91
Quality & Moat
4.91%
ROIC
10.19%
7.37%
ROE
8.31%
16.36%
Gross Margin
74.80%
12.22
PEG Ratio
13.77
Balance Sheet Safety
0.20
Net Debt / Equity
0.57
N/A
Interest Coverage
N/A
1.95
Net Debt / EBITDA
2.03
2.23%
Dividend Yield
6.61%
LEN: 3Ties: 2PFE: 5
LENPFE

Historical Fundamentals

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LEN

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.

PFE

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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LEN
$0.00
created per $1 retained over 3 years
Value Destroyer
Σ Retained
$8.45B
Δ Market Cap
+$821,755.949
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
PFE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-10.61B
Δ Market Cap
$-146.18B
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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LEN
74.5% Margin of Safety
Price is 74.5% below estimated fair value
Current Price: $89.73
Fair Value: $351.44
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
PFE
12.3% Overvalued
Price is 12.3% above estimated fair value
Current Price: $25.21
Fair Value: $22.46
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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LEN

Requires positive FCF to compute implied growth rate.

PFE

What growth rate is the market pricing in at $25?

+5.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.5%

The market implies +5.2% Owner Earnings growth, above historical trends.

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

Economic Moat Score

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LEN
53/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.

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.
PFE
35/100
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 5 years of fundamental data.

Forensic Accounting

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LEN
-2.13
Possible 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.
PFE
-2.53
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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LEN
Insiders 6.7%Institutions 95.0%
No. of Institutional Holders1,284
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.
PFE
Insiders 0.1%Institutions 69.4%Retail & Other 30.5%
No. of Institutional Holders3,744
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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LEN
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
PFE
0
Buys (3M)
0
Buys (12M)
BLAYLOCK RONALD E
Director
$499,072
@ $25.65 · 2025-02-13
GOTTLIEB SCOTT
Director
$28,240
@ $28.24 · 2024-10-30
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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LEN
0
Sells (3M)
0
Sells (12M)
SONNENFELD JEFFREY ALAN
Director
$3.06M
@ $175.13 · 2024-10-28
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
PFE
1
Sells (3M)
1
Sells (12M)
Total value (12M): $51,400
DAMICO JENNIFER B.
Officer
$51,400
@ $25.70 · 2026-06-09
DAMICO JENNIFER B.
Officer
$64,825
@ $25.93 · 2025-03-04
DAMICO JENNIFER B.
Officer
$147,714
@ $28.66 · 2024-08-13
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

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LEN
FearGreed
😨Fear(35/100)

"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.
PFE
FearGreed
😐Neutral(49/100)

"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.

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

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LEN
⚪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 (35)
PFE
⚪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 (49)
View LEN Full AnalysisView PFE Full Analysis

Frequently Asked Questions: LEN vs PFE

Is Lennar Corporation or Pfizer Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, LEN trades at a 86.9% margin of safety (intrinsic value $682 vs. price $90), compared to PFE's -12.3% margin of safety (intrinsic $22 vs. $25).

Which stock has a wider economic moat, Lennar Corporation or Pfizer Inc.?▼

LEN scores 53/100 (Narrow 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 2.1 places it in the Grey zone, signaling elevated bankruptcy risk. LEN scores 4.0 (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, Lennar Corporation or Pfizer Inc.?▼

PFE earns 10.2% ROIC versus LEN's 4.9%. 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, Lennar Corporation's or Pfizer Inc.'s?▼

LEN's dividend earns a safety score of 64/100 (Safe), compared to PFE's 24/100 (Unsafe). LEN has raised its dividend for 3 consecutive years.