Oracle Corporation (ORCL) vs Viatris Inc. (VTRS): 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%. VTRS is undervalued at $15, with an intrinsic value of $32 and a margin of safety of 52%. Of the two, VTRS has the wider margin of safety.
Rewards
- ★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.
- ★FCF yield of 12.5% is historically attractive — the business generates significant cash relative to its price.
- ★PEG ratio of 0.15 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
Risks
- ⚠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.
- ⚠Altman Z-Score of 0.86 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Free cash flow has declined at a 9.7% CAGR over the past 4 years — a concerning trend.
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 →Requires positive FCF to compute implied growth rate.
What growth rate is the market pricing in at $15?
Market above historical growth — verify catalysts.
Economic Moat Score
Learn more →Narrow moat with revenue predictability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Forensic Accounting
Learn more →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 pessimistic — investigate whether fears are temporary or structural"
"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
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: ORCL vs VTRS
Is Oracle Corporation or Viatris Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, VTRS trades at a 51.6% margin of safety (intrinsic value $32 vs. price $15), compared to ORCL's 35.4% margin of safety (intrinsic $285 vs. $184).
Which stock has a wider economic moat, Oracle Corporation or Viatris Inc.?▼
ORCL scores 68/100 (Narrow moat), while VTRS scores 39/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Viatris Inc. in financial distress?▼
VTRS's Altman Z-Score of 0.9 places it in the Distress 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 Viatris Inc.?▼
Viatris Inc. (VTRS) generates a 12.5% 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 Viatris Inc.?▼
ORCL earns 9.7% ROIC versus VTRS's 2.7%. 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 Viatris Inc.'s?▼
ORCL's dividend earns a safety score of 79/100 (Safe), compared to VTRS's 74/100 (Safe). ORCL has raised its dividend for 3 consecutive years.