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Compare Stocks › PFE vs TROW

Pfizer, Inc. (PFE) vs T. Rowe Price Group, Inc. (TROW): Which Is the Better Buy in 2026?

As of 2026-08-03, PFE is undervalued at $25, with a DCF intrinsic value of $127985960274 and a margin of safety of 100%. TROW is undervalued at $112, with an intrinsic value of $186 and a margin of safety of 40%. Of the two, PFE has the wider margin of safety.

PFE
Pfizer, Inc.
$25.01
VS
TROW
T. Rowe Price Group, Inc.
$111.75

Rewards

PFE
  • ★Gross margin of 74.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Trailing P/E of 19.1x is 37% below the historical average of 30.4x — potentially undervalued relative to its own history.
TROW
  • ★T. Rowe Price Group, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★T. Rowe Price Group, Inc. scores 83/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
  • ★Each dollar of retained earnings has created $1.95 of earning power — management is creating shareholder value.

Risks

PFE
  • ⚠ROIC has declined by 15.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠PEG ratio of 2.94 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Altman Z-Score of 1.38 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
TROW
  • ⚠PEG ratio of 6.39 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Free cash flow has declined at a 11.3% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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PFE
TROW
Valuation
$12.38B
Free Cash Flow
$2.02B
N/A
FCF Yield
8.45%
19.09
Trailing P/E
11.22
8.85
Forward P/E
10.86
Quality & Moat
10.19%
ROIC
13.63%
8.31%
ROE
19.40%
74.80%
Gross Margin
51.61%
2.94
PEG Ratio
6.39
Balance Sheet Safety
0.57
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
2.03
Net Debt / EBITDA
-0.94
6.88%
Dividend Yield
4.65%
PFE: 5Ties: 1TROW: 5
PFETROW

Historical Fundamentals

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PFE

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.

TROW

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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PFE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-10.61B
Δ Market Cap
$-26.34
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
TROW
$-0.81
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$2.58B
Δ Market Cap
$-2.09B
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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PFE
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $25.01
Fair Value: $127985960274.09
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
TROW
39.8% Margin of Safety
Price is 39.8% below estimated fair value
Current Price: $111.75
Fair Value: $185.78
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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PFE

What growth rate is the market pricing in at $25?

-14.2%
Market-Implied Owner Earnings Growth
Standard FCF implies -15.0%

The market implies -14.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding -15.0%, reflecting heavy growth investment.

TROW

What growth rate is the market pricing in at $112?

-3.8%
Market-Implied Owner Earnings Growth
Standard FCF implies -1.2%

The market implies -3.8% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -1.2%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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PFE
35/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
TROW
83/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Reinvestment Efficiency 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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PFE
-2.53
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.
TROW
-2.51
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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PFE
Insiders 0.1%Institutions 69.5%Retail & Other 30.4%
No. of Institutional Holders3,661
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.
TROW
Insiders 1.7%Institutions 90.3%Retail & Other 8.0%
No. of Institutional Holders1,508
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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PFE
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
TROW
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
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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PFE
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
TROW
1
Sells (3M)
3
Sells (12M)
Total value (12M): $1.07M
JACKSON STEPHON A.
Officer
$307,680
@ $102.56 · 2026-05-13
HUSAIN ARIF
Vice President
$434,336
@ $101.96 · 2025-12-10
MACLELLAN ROBERT FRANCIS
Director
$324,466
@ $105.01 · 2025-09-22
SAWYER DOROTHY C
Vice President
$190,860
@ $95.43 · 2025-06-11
HIEBLER JESSICA M
Officer
$93,879
@ $96.98 · 2025-05-12
MACLELLAN ROBERT FRANCIS
Director
$362,120
@ $91.56 · 2025-03-31
HIEBLER JESSICA M
Officer
$126,965
@ $107.87 · 2025-02-14
HUSAIN ARIF
Vice President
$449,318
@ $109.27 · 2025-02-11
THOMSON ANDREW JUSTIN MACKENZIE
Officer
$499,184
@ $123.35 · 2024-12-10
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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PFE
FearGreed
😐Neutral(52/100)

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

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.
TROW
FearGreed
😐Neutral(48/100)

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

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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PFE
⚪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 (52)
TROW
⚪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 (48)
View PFE Full AnalysisView TROW Full Analysis

Frequently Asked Questions: PFE vs TROW

Is Pfizer, Inc. or T. Rowe Price Group, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, PFE trades at a 100.0% margin of safety (intrinsic value $127985960274 vs. price $25), compared to TROW's 39.8% margin of safety (intrinsic $186 vs. $112).

Which stock has a wider economic moat, Pfizer, Inc. or T. Rowe Price Group, Inc.?▼

TROW scores 83/100 (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 1.4 places it in the Distress zone, signaling elevated bankruptcy risk. TROW scores 8.3 (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, Pfizer, Inc. or T. Rowe Price Group, Inc.?▼

TROW earns 13.6% ROIC versus PFE's 10.2%. 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 T. Rowe Price Group, Inc.'s?▼

TROW's dividend earns a safety score of 69/100 (Safe), compared to PFE's 24/100 (Unsafe). TROW has raised its dividend for 3 consecutive years.