Compare Stocks › ORCL vs SOLV

Oracle Corporation (ORCL) vs Solventum Corporation (SOLV): 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%. SOLV is undervalued at $75, with an intrinsic value of $177 and a margin of safety of 57%. Of the two, SOLV has the wider margin of safety.

ORCL

Oracle Corporation

$184.29

SOLV

Solventum Corporation

$75.43

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.

SOLV

★Trailing P/E of 9.2x is 29% below the historical average of 13.0x — potentially undervalued relative to its own history.

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.

SOLV

⚠ROIC has declined by 5.8 percentage points over the past 4 years, which may signal competitive erosion.
⚠FCF yield of 2.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠Net debt/EBITDA of 4.2x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.

Key Valuation Metrics

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ORCL

SOLV

Valuation

$-20.34B

Free Cash Flow

$378.50M

-3.84%

FCF Yield

2.90%

31.56

Trailing P/E

9.23

16.89

Forward P/E

10.70

Quality & Moat

9.68%

ROIC

3.55%

53.38%

ROE

34.79%

65.82%

Gross Margin

53.65%

1.06

PEG Ratio

1.22

Balance Sheet Safety

2.89

Net Debt / Equity

0.95

N/A

Interest Coverage

N/A

3.92

Net Debt / EBITDA

4.21

1.09%

Dividend Yield

0.00%

ORCL: 6Ties: 1SOLV: 5

ORCLSOLV

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.

SOLV

$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

SOLV

$1.50

created per $1 retained over 1 year

Value Creator

Σ Retained

$1.56B

Δ Market Cap

+$2.33B

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

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $285.39

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

SOLV

57.3% Margin of Safety

Price is 57.3% below estimated fair value

Current Price: $75.43

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $176.83

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.

SOLV

What growth rate is the market pricing in at $75?

-0.9%

Market-Implied Owner Earnings Growth

Standard FCF implies +19.4%

The market implies -0.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +19.4%, reflecting heavy growth investment.

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.

SOLV

50/100

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.

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.

SOLV

-2.00

Possible Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

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.

SOLV

Insiders 15.1%Institutions 76.5%Retail & Other 8.4%

No. of Institutional Holders1,187

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

Buys (3M)

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

SOLV

Buys (3M)

Buys (12M)

Total value (12M): $100,344

MCBRIDE-WENDELL AMY A.

Director

$100,344

@ $68.03 · 2026-03-10

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

Sells (3M)

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

SOLV

Sells (3M)

Sells (12M)

Total value (12M): $646.36M

3M CO

Beneficial Owner of more than 10% of a Class of Security

$646.36M

@ $73.45 · 2025-08-15

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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ORCL

😨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.

SOLV

😐Neutral(50/100)

"Market is pricing this stock without strong emotion in either direction"

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)

SOLV

⚪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 (50)

View ORCL Full Analysis View SOLV Full Analysis

Frequently Asked Questions: ORCL vs SOLV

Is Oracle Corporation or Solventum Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, SOLV trades at a 57.3% margin of safety (intrinsic value $177 vs. price $75), compared to ORCL's 35.4% margin of safety (intrinsic $285 vs. $184).

Which stock has a wider economic moat, Oracle Corporation or Solventum Corporation?▼

ORCL scores 68/100 (Narrow moat), while SOLV scores 50/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Solventum Corporation in financial distress?▼

SOLV's Altman Z-Score of 1.9 places it in the Grey zone, signaling elevated bankruptcy risk. ORCL scores 2.7 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, Oracle Corporation or Solventum Corporation?▼

Solventum Corporation (SOLV) generates a 2.9% free cash flow yield, compared to Oracle Corporation's -3.8%. 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, Oracle Corporation or Solventum Corporation?▼

ORCL earns 9.7% ROIC versus SOLV's 3.6%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.