Compare StocksORCL vs PAYX

Oracle Corporation (ORCL) vs Paychex, Inc. (PAYX): Which Is the Better Buy in 2026?

As of 2026-06-19, ORCL is undervalued at $184, with a DCF intrinsic value of $285 and a margin of safety of 35%. PAYX is overvalued at $98, with an intrinsic value of $89 and a margin of safety of -11%. Of the two, ORCL has the wider margin of safety.

ORCL
Oracle Corporation
$184.29
VS
PAYX
Paychex, Inc.
$98.24

Rewards

ORCL
  • Oracle Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • Gross margin of 65.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • Return on equity has consistently exceeded 20% over 3 years, indicating efficient use of shareholder capital.
PAYX
  • Paychex, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • Gross margin of 67.2% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • Paychex, Inc. scores 94/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.

Risks

ORCL
  • Despite buyback spending, shares outstanding increased in 3 out of 4 years — stock-based compensation is offsetting repurchases.
  • High leverage (2.89x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • Insiders have sold $2.6M worth of stock in the past 3 months — significant insider liquidation.
PAYX

    Key Valuation Metrics

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    ORCL
    PAYX
    Valuation
    $-20.34B
    Free Cash Flow
    N/A
    -3.84%
    FCF Yield
    N/A
    31.56
    Trailing P/E
    21.69
    16.89
    Forward P/E
    16.66
    Quality & Moat
    9.68%
    ROIC
    15.41%
    53.38%
    ROE
    41.29%
    65.82%
    Gross Margin
    67.20%
    1.06
    PEG Ratio
    1.74
    Balance Sheet Safety
    2.89
    Net Debt / Equity
    0.81
    N/A
    Interest Coverage
    N/A
    3.92
    Net Debt / EBITDA
    2.01
    1.09%
    Dividend Yield
    0.00%
    ORCL: 3Ties: 3PAYX: 4
    ORCLPAYX

    Historical Fundamentals

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    ORCL

    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.

    PAYX

    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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    ORCL
    $17.69
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $18.61B
    Δ Market Cap
    +$329.28B
    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
    PAYX
    $-1.19
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $966.2M
    Δ Market Cap
    $-1.15B
    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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    ORCL
    35.4% Margin of Safety
    Price is 35.4% below estimated fair value
    Current Price: $184.29
    Fair Value: $285.39
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    PAYX
    10.9% Overvalued
    Price is 10.9% above estimated fair value
    Current Price: $98.24
    Fair Value: $88.60
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    ORCL

    Requires positive FCF to compute implied growth rate.

    PAYX

    Requires positive FCF to compute implied growth rate.

    Economic Moat Score

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    ORCL
    68/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with revenue predictability as the key competitive advantage. Improving reinvestment efficiency 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.
    PAYX
    94/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. Margin Stability is the standout factor.

    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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    ORCL
    -2.57
    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.
    PAYX
    -2.93
    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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    ORCL
    Insiders 40.5%Institutions 44.0%Retail & Other 15.5%
    No. of Institutional Holders4,512
    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.
    PAYX
    Insiders 10.3%Institutions 85.2%Retail & Other 4.5%
    No. of Institutional Holders1,990
    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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    ORCL
    0
    Buys (3M)
    1
    Buys (12M)
    Total value (12M): $112,258
    FAIRHEAD RONA ALISON
    Director
    $112,258
    @ $233.87 · 2025-07-07
    MOORMAN CHARLES W IV
    Director
    $947,913
    @ $172.35 · 2025-02-12
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    PAYX
    0
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $197,258
    DOODY JOSEPH G
    Director
    $98,760
    @ $98.76 · 2026-02-04
    BONADIO THOMAS F
    Director
    $98,498
    @ $98.50 · 2026-02-04
    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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    ORCL
    1
    Sells (3M)
    19
    Sells (12M)
    Total value (12M): $1.89B
    LEVEY STUART A
    Officer
    $2.64M
    @ $176.19 · 2026-04-16
    MAGOUYRK CLAYTON M
    Chief Executive Officer
    $1.55M
    @ $155.23 · 2026-02-09
    KEHRING DOUGLAS A
    Officer
    $6.82M
    @ $194.89 · 2026-01-15
    HURA MARK
    Officer
    $2.95M
    @ $196.89 · 2025-12-24
    SELIGMAN NAOMI O
    Director
    $437,064
    @ $196.61 · 2025-12-23
    MAGOUYRK CLAYTON M
    Chief Executive Officer
    $1.93M
    @ $192.52 · 2025-12-19
    SMITH MARIA
    Officer
    $2.80M
    @ $280.31 · 2025-10-23
    MAGOUYRK CLAYTON M
    Chief Executive Officer
    $11.07M
    @ $276.64 · 2025-10-21
    LEVEY STUART A
    Officer
    $5.93M
    @ $300.00 · 2025-10-10
    SELIGMAN NAOMI O
    Director
    $641,958
    @ $288.91 · 2025-09-26
    SICILIA MICHAEL D
    Officer
    $10.87M
    @ $321.16 · 2025-09-23
    SICILIA MICHAEL D
    Officer
    $5.12M
    @ $313.60 · 2025-09-16
    MAGOUYRK CLAYTON M
    President
    $6.31M
    @ $297.11 · 2025-09-12
    SICILIA MICHAEL D
    Officer
    $4.04M
    @ $254.48 · 2025-08-05
    SELIGMAN NAOMI O
    Director
    $770,656
    @ $233.32 · 2025-07-16
    SMITH MARIA
    Officer
    $2.33M
    @ $232.99 · 2025-07-03
    CATZ SAFRA A
    Chief Executive Officer
    $267.24M
    @ $212.01 · 2025-06-27
    CATZ SAFRA A
    Chief Executive Officer
    $794.64M
    @ $212.50 · 2025-06-26
    CATZ SAFRA A
    Chief Executive Officer
    $764.01M
    @ $206.77 · 2025-06-23
    CONRADES GEORGE HENRY
    Director
    $1.74M
    @ $213.49 · 2025-06-17
    MAGOUYRK CLAYTON M
    Officer
    $3.21M
    @ $214.10 · 2025-06-17
    SELIGMAN NAOMI O
    Director
    $428,562
    @ $149.53 · 2025-05-05
    SELIGMAN NAOMI O
    Director
    $291,620
    @ $145.81 · 2025-04-02
    CATZ SAFRA A
    Chief Executive Officer
    $705.46M
    @ $185.40 · 2025-01-24
    SMITH MARIA
    Officer
    $1.04M
    @ $165.00 · 2024-09-16
    ELLISON LAWRENCE JOSEPH
    Chief Technology Officer
    $322.05M
    @ $143.13 · 2024-07-16
    SCREVEN EDWARD LLOYD
    Officer
    $60.58M
    @ $141.91 · 2024-07-10
    SCREVEN EDWARD LLOYD
    Officer
    $5.22M
    @ $140.19 · 2024-06-26
    SCREVEN EDWARD LLOYD
    Officer
    $34.04M
    @ $144.30 · 2024-06-20
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    PAYX
    1
    Sells (3M)
    5
    Sells (12M)
    Total value (12M): $16.66M
    ROALDSEN ELIZABETH
    Officer
    $41,310
    @ $90.00 · 2026-05-13
    SCHRADER ROBERT L.
    Chief Financial Officer
    $444,391
    @ $140.63 · 2025-07-16
    SIMMONS CHRISTOPHER C
    Officer and Treasurer
    $259,826
    @ $140.98 · 2025-07-16
    GIBSON JOHN B JR
    Chief Executive Officer
    $1.76M
    @ $141.92 · 2025-07-16
    MUCCI MARTIN
    Chairman of the Board
    $14.16M
    @ $145.17 · 2025-07-10
    VELLI JOSEPH M
    Director
    $544,762
    @ $149.25 · 2025-04-15
    GIOJA MICHAEL E
    Officer
    $4.89M
    @ $154.59 · 2025-04-03
    BOTTINI MARK ANTHONY
    Officer
    $6.65M
    @ $141.87 · 2024-10-16
    SCHRADER ROBERT L.
    Chief Financial Officer
    $1.85M
    @ $142.35 · 2024-10-15
    GIOJA MICHAEL E
    Officer
    $3.67M
    @ $139.03 · 2024-10-09
    GIOJA MICHAEL E
    Officer
    $2.05M
    @ $139.18 · 2024-10-04
    DOODY JOSEPH G
    Director
    $1.13M
    @ $130.69 · 2024-08-26
    SIMMONS CHRISTOPHER C
    Officer and Treasurer
    $293,797
    @ $125.34 · 2024-08-16
    FLASCHEN DAVID J S
    Director
    $1.81M
    @ $125.21 · 2024-08-05
    FLASCHEN DAVID J S
    Director
    $1.21M
    @ $125.60 · 2024-07-26
    BOTTINI MARK ANTHONY
    Officer
    $1.11M
    @ $123.60 · 2024-07-24
    GIBSON JOHN B JR
    Chief Executive Officer
    $1.51M
    @ $119.53 · 2024-07-15
    MUCCI MARTIN
    Chairman of the Board
    $21.93M
    @ $117.04 · 2024-07-02
    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 →
    ORCL
    FearGreed
    😨Fear(32/100)

    "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.
    PAYX
    FearGreed
    😨Fear(36/100)

    "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

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    ORCL
    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 (32)
    PAYX
    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 (36)
    View ORCL Full AnalysisView PAYX Full Analysis

    Frequently Asked Questions: ORCL vs PAYX

    Is Oracle Corporation or Paychex, Inc. more undervalued in 2026?

    Based on our discounted cash flow model, ORCL trades at a 35.4% margin of safety (intrinsic value $285 vs. price $184), compared to PAYX's -10.9% margin of safety (intrinsic $89 vs. $98).

    Which stock has a wider economic moat, Oracle Corporation or Paychex, Inc.?

    PAYX scores 94/100 (Wide moat), while ORCL scores 68/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is Oracle Corporation in financial distress?

    ORCL's Altman Z-Score of 2.7 places it in the Grey zone, signaling elevated bankruptcy risk. PAYX scores 3.1 (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, Oracle Corporation or Paychex, Inc.?

    PAYX earns 15.4% ROIC versus ORCL's 9.7%. 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, Oracle Corporation's or Paychex, Inc.'s?

    ORCL's dividend earns a safety score of 79/100 (Safe), compared to PAYX's 34/100 (Unsafe). ORCL has raised its dividend for 3 consecutive years.