Motorola Solutions, Inc. (MSI) vs Visa Inc. (V): Which Is the Better Buy in 2026?
As of 2026-09-17, MSI is overvalued at $463, with a DCF intrinsic value of $251 and a margin of safety of -84%. V is overvalued at $370, with an intrinsic value of $316 and a margin of safety of -17%. Of the two, V has the wider margin of safety.
Rewards
- ★Motorola Solutions, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Motorola Solutions, Inc. scores 93/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Free cash flow has grown at a 18.0% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Visa Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 97.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Visa Inc. scores 99/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
Risks
- ⚠FCF yield of 2.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠PEG ratio of 2.08 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠High leverage (3.31x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠FCF yield of 3.0% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠9 insider sales totaling $44.9M 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 $463?
The market implies +16.1% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +18.2%, reflecting heavy growth investment.
What growth rate is the market pricing in at $370?
The market implies +15.3% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +15.0%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
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 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: MSI vs V
Is Motorola Solutions, Inc. or Visa Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, V trades at a -16.9% margin of safety (intrinsic value $316 vs. price $370), compared to MSI's -84.5% margin of safety (intrinsic $251 vs. $463).
Which stock has a wider economic moat, Motorola Solutions, Inc. or Visa Inc.?▼
V scores 99/100 (Wide moat), while MSI scores 93/100 (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, Motorola Solutions, Inc. or Visa Inc.?▼
Visa Inc. (V) generates a 3.0% free cash flow yield, compared to Motorola Solutions, Inc.'s 2.6%. 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, Motorola Solutions, Inc. or Visa Inc.?▼
V earns 39.4% ROIC versus MSI's 21.5%. 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, Motorola Solutions, Inc.'s or Visa Inc.'s?▼
V's dividend earns a safety score of 94/100 (Very Safe), compared to MSI's 94/100 (Very Safe). V has raised its dividend for 3 consecutive years.