Oracle Corporation (ORCL) vs Willis Towers Watson Public Limited Company (WTW): Which Is the Better Buy in 2026?
As of 2026-09-17, ORCL is undervalued at $151, with a DCF intrinsic value of $386 and a margin of safety of 61%. WTW is undervalued at $312, with an intrinsic value of $577 and a margin of safety of 46%. Of the two, ORCL has the wider margin of safety.
Rewards
- ★Gross margin of 64.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
- ★Each dollar of retained earnings has created $3.80 of earning power — management is an exceptional capital allocator.
- ★Willis Towers Watson Public Limited Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Willis Towers Watson Public Limited Company scores 89/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
- ★Free cash flow has grown at a 36.5% CAGR over the past 4 years, demonstrating strong earnings power growth.
Risks
- ⚠Despite buyback spending, shares outstanding increased in 3 out of 4 years — stock-based compensation is offsetting repurchases.
- ⚠High leverage (1.97x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠Altman Z-Score of 1.73 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Altman Z-Score of 1.56 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
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 $312?
The market implies +7.1% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +10.4%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Narrow moat with revenue predictability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
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 WTW
Is Oracle Corporation or Willis Towers Watson Public Limited Company more undervalued in 2026?▼
Based on our discounted cash flow model, ORCL trades at a 60.9% margin of safety (intrinsic value $386 vs. price $151), compared to WTW's 46.0% margin of safety (intrinsic $577 vs. $312).
Which stock has a wider economic moat, Oracle Corporation or Willis Towers Watson Public Limited Company?▼
WTW scores 89/100 (Wide moat), while ORCL scores 67/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Willis Towers Watson Public Limited Company in financial distress?▼
WTW's Altman Z-Score of 1.6 places it in the Distress zone, signaling elevated bankruptcy risk. ORCL scores 1.7 (Distress 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 Willis Towers Watson Public Limited Company?▼
Willis Towers Watson Public Limited Company (WTW) generates a 4.9% free cash flow yield, compared to Oracle Corporation's -10.1%. 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 Willis Towers Watson Public Limited Company?▼
WTW earns 9.4% ROIC versus ORCL's 8.5%. 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, Oracle Corporation's or Willis Towers Watson Public Limited Company's?▼
WTW's dividend earns a safety score of 91/100 (Very Safe), compared to ORCL's 79/100 (Safe). WTW has raised its dividend for 2 consecutive years.