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Compare Stocks › LLY vs TYL

Eli Lilly and Company (LLY) vs Tyler Technologies, Inc. (TYL): Which Is the Better Buy in 2026?

As of 2026-06-19, LLY is fairly valued at $1099, with a DCF intrinsic value of $1143 and a margin of safety of 4%. TYL is fairly valued at $279, with an intrinsic value of $343 and a margin of safety of 19%. Of the two, TYL has the wider margin of safety.

LLY
Eli Lilly and Company
$1098.57
VS
TYL
Tyler Technologies, Inc.
$278.91

Rewards

LLY
  • ★Eli Lilly and Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 82.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Eli Lilly and Company scores 73/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
TYL
  • ★Free cash flow has grown at a 23.3% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $2.16 of earning power — management is an exceptional capital allocator.
  • ★Trailing P/E of 38.5x is 55% below the historical average of 85.7x — potentially undervalued relative to its own history.

Risks

LLY
  • ⚠FCF yield of 0.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠Insiders have sold $18.6M worth of stock in the past 3 months — significant insider liquidation.
TYL

    Key Valuation Metrics

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    LLY
    TYL
    Valuation
    $9.16B
    Free Cash Flow
    $544.49M
    0.93%
    FCF Yield
    4.75%
    39.00
    Trailing P/E
    38.47
    24.69
    Forward P/E
    18.95
    Quality & Moat
    37.80%
    ROIC
    8.89%
    107.46%
    ROE
    8.93%
    82.83%
    Gross Margin
    46.75%
    1.50
    PEG Ratio
    1.45
    Balance Sheet Safety
    1.22
    Net Debt / Equity
    Net cash
    N/A
    Interest Coverage
    N/A
    1.05
    Net Debt / EBITDA
    -0.66
    0.56%
    Dividend Yield
    0.00%
    LLY: 5Ties: 3TYL: 4
    LLYTYL

    Historical Fundamentals

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    LLY

    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.

    TYL

    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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    LLY
    $27.49
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $22.34B
    Δ Market Cap
    +$614.01B
    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
    TYL
    $8.20
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $744.5M
    Δ Market Cap
    +$6.10B
    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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    LLY
    3.9% Margin of Safety
    Price is 3.9% below estimated fair value
    Current Price: $1098.57
    Fair Value: $1143.11
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    TYL
    18.8% Margin of Safety
    Price is 18.8% below estimated fair value
    Current Price: $278.91
    Fair Value: $343.29
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    LLY

    What growth rate is the market pricing in at $1099?

    +20.0%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +31.4%

    The market implies +20.0% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +31.4%, reflecting heavy growth investment expected to generate future returns.

    TYL

    What growth rate is the market pricing in at $279?

    +11.3%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +8.1%

    The market implies +11.3% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +8.1%, reflecting heavy growth investment expected to generate future returns.

    Economic Moat Score

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    LLY
    73/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by roic consistency. Reinvestment Efficiency 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 5 years of fundamental data.
    TYL
    62/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency 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.

    Forensic Accounting

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    LLY
    -1.83
    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.
    TYL
    -2.70
    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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    LLY
    Insiders 0.2%Institutions 85.3%Retail & Other 14.5%
    No. of Institutional Holders5,580
    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.
    TYL
    Insiders 0.5%Institutions 103.5%
    No. of Institutional Holders1,115
    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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    LLY
    0
    Buys (3M)
    8
    Buys (12M)
    Total value (12M): $4.54M
    MONTARCE LUCAS E
    Chief Financial Officer
    $494,627
    @ $691.79 · 2025-08-15
    VAN NAARDEN JACOB S.
    Officer
    $647,360
    @ $647.36 · 2025-08-13
    ALVAREZ RALPH
    Director
    $500,473
    @ $660.25 · 2025-08-13
    FYRWALD J. ERIK
    Director
    $1.01M
    @ $642.33 · 2025-08-12
    RICKS DAVID A
    Chief Executive Officer
    $1.05M
    @ $644.77 · 2025-08-12
    SKOVRONSKY DANIEL
    Officer
    $634,405
    @ $634.40 · 2025-08-12
    SULZBERGER GABRIELLE
    Director
    $75,018
    @ $641.18 · 2025-08-12
    JACKSON JAMERE
    Director
    $127,913
    @ $639.57 · 2025-08-08
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    TYL
    0
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $694,152
    TEED ANDREW D.
    Director
    $495,856
    @ $309.91 · 2026-02-23
    DIAZ-PEDROSA ABIGAIL MARSHALL
    Officer
    $198,296
    @ $325.08 · 2026-02-20
    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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    LLY
    2
    Sells (3M)
    41
    Sells (12M)
    Total value (12M): $3.86B
    YUFFA ILYA
    Officer
    $2.88M
    @ $1150.77 · 2026-06-10
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $15.75M
    @ $995.36 · 2026-05-06
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $322.38M
    @ $1103.48 · 2026-01-07
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $1.51M
    @ $1085.01 · 2026-01-05
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $3.90M
    @ $1085.04 · 2025-12-29
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $2.85M
    @ $1085.17 · 2025-12-24
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $260,409
    @ $1085.04 · 2025-12-23
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $161.08M
    @ $1095.35 · 2025-11-25
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $17.34M
    @ $1109.30 · 2025-11-25
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $152.06M
    @ $1068.52 · 2025-11-24
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $111.50M
    @ $1058.66 · 2025-11-21
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $39.07M
    @ $1051.66 · 2025-11-20
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $176.10M
    @ $1051.17 · 2025-11-19
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $62.31M
    @ $1034.78 · 2025-11-18
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $10.19M
    @ $1030.68 · 2025-11-17
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $183.33M
    @ $1028.25 · 2025-11-14
    ZAKROWSKI DONALD A
    Officer
    $1.01M
    @ $1010.50 · 2025-11-13
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $48.02M
    @ $1030.26 · 2025-11-13
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $308.41M
    @ $1011.18 · 2025-11-12
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $279.35M
    @ $986.64 · 2025-11-11
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $16.41M
    @ $972.52 · 2025-11-10
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $167.09M
    @ $933.26 · 2025-11-05
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $38.47M
    @ $951.56 · 2025-11-05
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $479,038
    @ $910.72 · 2025-11-04
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $266.65M
    @ $888.83 · 2025-11-03
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $260.17M
    @ $863.35 · 2025-10-31
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $3.16M
    @ $863.24 · 2025-10-10
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $9.04M
    @ $852.49 · 2025-10-09
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $86.23M
    @ $850.27 · 2025-10-08
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $22.72M
    @ $848.01 · 2025-10-07
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $137.04M
    @ $850.22 · 2025-10-06
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $161.22M
    @ $837.93 · 2025-10-03
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $92.50M
    @ $821.55 · 2025-10-02
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $107.36M
    @ $794.15 · 2025-10-01
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $177.29M
    @ $821.47 · 2025-10-01
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $86.79M
    @ $763.39 · 2025-09-30
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $18.06M
    @ $763.09 · 2025-09-19
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $81.53M
    @ $764.65 · 2025-09-18
    ZAKROWSKI DONALD A
    Officer
    $734,930
    @ $734.93 · 2025-08-28
    YUFFA ILYA
    Officer
    $783,762
    @ $627.01 · 2025-08-11
    LILLY ENDOWMENT, INC.
    Beneficial Owner of more than 10% of a Class of Security
    $225.42M
    @ $805.07 · 2025-07-24
    ZAKROWSKI DONALD A
    Officer
    $716,410
    @ $716.41 · 2025-05-27
    YUFFA ILYA
    Officer
    $936,550
    @ $749.24 · 2025-05-14
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    TYL
    0
    Sells (3M)
    13
    Sells (12M)
    Total value (12M): $16.95M
    CARTER GLENN A.
    Director
    $567,003
    @ $349.14 · 2026-03-12
    PUCKETT JEFFREY DAVID
    Chief Operating Officer
    $1.91M
    @ $369.93 · 2026-03-05
    POPE DANIEL M
    Director
    $177,700
    @ $355.40 · 2026-03-02
    MILLER BRIAN K.
    Chief Financial Officer
    $448,510
    @ $448.51 · 2025-12-15
    MILLER BRIAN K.
    Chief Financial Officer
    $458,650
    @ $458.65 · 2025-12-12
    CARTER GLENN A.
    Director
    $229,364
    @ $458.73 · 2025-12-12
    MILLER BRIAN K.
    Chief Financial Officer
    $469,080
    @ $469.08 · 2025-11-25
    CARTER GLENN A.
    Director
    $403,725
    @ $538.30 · 2025-09-15
    MARR JOHN S JR
    Officer and Director
    $2.24M
    @ $560.65 · 2025-09-09
    MARR JOHN S JR
    Officer and Director
    $2.36M
    @ $555.53 · 2025-08-28
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $3.09M
    @ $588.89 · 2025-08-11
    CLINE BRENDA A
    Director
    $1.54M
    @ $616.65 · 2025-08-06
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $3.05M
    @ $580.77 · 2025-07-31
    MILLER BRIAN K.
    Chief Financial Officer
    $696,866
    @ $580.72 · 2025-06-13
    MILLER BRIAN K.
    Chief Financial Officer
    $613,041
    @ $587.20 · 2025-06-12
    MILLER BRIAN K.
    Chief Financial Officer
    $703,101
    @ $585.92 · 2025-06-10
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $3.07M
    @ $585.18 · 2025-06-10
    MARR JOHN S JR
    Officer and Director
    $2.29M
    @ $572.41 · 2025-06-09
    MILLER BRIAN K.
    Chief Financial Officer
    $693,187
    @ $577.66 · 2025-06-06
    DIAZ-PEDROSA ABIGAIL MARSHALL
    Officer
    $215,100
    @ $573.60 · 2025-06-05
    MARR JOHN S JR
    Officer and Director
    $1.65M
    @ $572.51 · 2025-05-30
    MILLER BRIAN K.
    Chief Financial Officer
    $1.89M
    @ $568.46 · 2025-05-23
    MARR JOHN S JR
    Officer and Director
    $2.27M
    @ $568.66 · 2025-05-22
    MILLER BRIAN K.
    Chief Financial Officer
    $1.04M
    @ $576.65 · 2025-05-16
    CLINE BRENDA A
    Director
    $1.44M
    @ $577.42 · 2025-05-16
    MARR JOHN S JR
    Officer and Director
    $2.79M
    @ $558.86 · 2025-05-09
    MILLER BRIAN K.
    Chief Financial Officer
    $575,639
    @ $557.79 · 2025-05-07
    POPE DANIEL M
    Director
    $200,750
    @ $550.00 · 2025-05-02
    MARR JOHN S JR
    Officer and Director
    $3.71M
    @ $619.00 · 2025-03-06
    MILLER BRIAN K.
    Chief Financial Officer
    $950,904
    @ $613.88 · 2025-03-04
    PUCKETT JEFFREY DAVID
    Chief Operating Officer
    $5.17M
    @ $608.53 · 2025-02-28
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $4.02M
    @ $617.59 · 2025-02-26
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $4.92M
    @ $614.54 · 2025-02-25
    MILLER BRIAN K.
    Chief Financial Officer
    $4.14M
    @ $613.75 · 2024-12-13
    MILLER BRIAN K.
    Chief Financial Officer
    $1.58M
    @ $632.01 · 2024-12-04
    MARR JOHN S JR
    Officer and Director
    $3.80M
    @ $633.55 · 2024-12-04
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $2.05M
    @ $631.41 · 2024-11-27
    MARR JOHN S JR
    Chairman of the Board
    $7.36M
    @ $613.66 · 2024-11-25
    MARR JOHN S JR
    Chairman of the Board
    $6.79M
    @ $616.88 · 2024-11-13
    MILLER BRIAN K.
    Chief Financial Officer
    $1.56M
    @ $624.41 · 2024-11-08
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $5.45M
    @ $623.02 · 2024-11-08
    MILLER BRIAN K.
    Chief Financial Officer
    $3.03M
    @ $606.71 · 2024-11-07
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $3.79M
    @ $605.82 · 2024-11-06
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $2.88M
    @ $576.62 · 2024-09-12
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $2.95M
    @ $590.98 · 2024-09-10
    MILLER BRIAN K.
    Chief Financial Officer
    $1.47M
    @ $586.04 · 2024-09-09
    CARTER GLENN A.
    Director
    $1.95M
    @ $582.57 · 2024-09-05
    MILLER BRIAN K.
    Chief Financial Officer
    $2.94M
    @ $587.97 · 2024-08-30
    MARR JOHN S JR
    Officer and Director
    $5.79M
    @ $578.51 · 2024-08-21
    MARR JOHN S JR
    Officer and Director
    $5.75M
    @ $575.50 · 2024-08-09
    MILLER BRIAN K.
    Chief Financial Officer
    $2.58M
    @ $573.36 · 2024-08-08
    MOORE HORACE LYNN JR.
    Chief Executive Officer
    $3.60M
    @ $576.49 · 2024-08-06
    PUCKETT JEFFREY DAVID
    Chief Operating Officer
    $3.44M
    @ $574.79 · 2024-07-31
    POPE DANIEL M
    Director
    $159,022
    @ $578.26 · 2024-07-29
    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 →
    LLY
    FearGreed
    😏Greed(61/100)

    "Market is optimistic — be cautious and ensure you have a margin of safety"

    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.
    TYL
    FearGreed
    😨Fear(26/100)

    "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 →
    LLY
    ⚪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: Greed (61)
    TYL
    ⚪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 (26)
    View LLY Full AnalysisView TYL Full Analysis

    Frequently Asked Questions: LLY vs TYL

    Is Eli Lilly and Company or Tyler Technologies, Inc. more undervalued in 2026?▼

    Based on our discounted cash flow model, TYL trades at a 18.8% margin of safety (intrinsic value $343 vs. price $279), compared to LLY's 3.9% margin of safety (intrinsic $1143 vs. $1099).

    Which stock has a wider economic moat, Eli Lilly and Company or Tyler Technologies, Inc.?▼

    LLY scores 73/100 (Wide moat), while TYL scores 62/100 (Narrow 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, Eli Lilly and Company or Tyler Technologies, Inc.?▼

    Tyler Technologies, Inc. (TYL) generates a 4.7% free cash flow yield, compared to Eli Lilly and Company's 0.9%. 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, Eli Lilly and Company or Tyler Technologies, Inc.?▼

    LLY earns 37.8% ROIC versus TYL's 8.9%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.