Pfizer Inc. (PFE) vs Pool Corporation (POOL): Which Is the Better Buy in 2026?
As of 2026-11-01, PFE is overvalued at $31, with a DCF intrinsic value of $22 and a margin of safety of -36%. POOL is overvalued at $206, with an intrinsic value of $165 and a margin of safety of -25%. Of the two, POOL has the wider margin of safety.
Rewards
- ★Gross margin of 74.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Insiders have bought $3.0M worth of stock in the past 3 months — significant skin in the game.
- ★Pool Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Pool Corporation scores 73/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
- ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
Risks
- ⚠ROIC has declined by 15.9 percentage points over the past 4 years, which may signal competitive erosion.
- ⚠FCF yield of 7.2% suggests reasonable valuation assuming continued moderate growth.
- ⚠Trailing P/E of 40.2x is 32% above the historical average of 30.4x — the stock trades at a premium to its own history.
- ⚠Free cash flow has declined at a 11.1% 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 →What growth rate is the market pricing in at $31?
The market implies +7.2% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +6.3%, reflecting heavy growth investment.
What growth rate is the market pricing in at $206?
The market implies +8.7% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +10.4%, reflecting heavy growth investment.
Economic Moat Score
Learn more →No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
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 optimistic — be cautious and ensure you have a margin of safety"
"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: PFE vs POOL
Is Pfizer Inc. or Pool Corporation more undervalued in 2026?▼
Based on our discounted cash flow model, POOL trades at a -25.2% margin of safety (intrinsic value $165 vs. price $206), compared to PFE's -36.1% margin of safety (intrinsic $22 vs. $31).
Which stock has a wider economic moat, Pfizer Inc. or Pool Corporation?▼
POOL scores 73/100 (Wide moat), while PFE scores 35/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Pfizer Inc. in financial distress?▼
PFE's Altman Z-Score of 2.1 places it in the Grey zone, signaling elevated bankruptcy risk. POOL scores 4.6 (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 company has better free cash flow, Pfizer Inc. or Pool Corporation?▼
Pfizer Inc. (PFE) generates a 7.2% free cash flow yield, compared to Pool Corporation's 4.9%. 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, Pfizer Inc. or Pool Corporation?▼
POOL earns 17.9% ROIC versus PFE's 9.4%. 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, Pfizer Inc.'s or Pool Corporation's?▼
POOL's dividend earns a safety score of 94/100 (Very Safe), compared to PFE's 24/100 (Unsafe). POOL has raised its dividend for 3 consecutive years.