The Progressive Corporation (PGR) vs Visa Inc. (V): Which Is the Better Buy in 2026?
As of 2026-06-21, PGR is undervalued at $205, with a DCF intrinsic value of $287 and a margin of safety of 29%. V is fairly valued at $327, with an intrinsic value of $304 and a margin of safety of -8%. Of the two, PGR has the wider margin of safety.
Rewards
- ★The Progressive Corporation scores 99/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Free cash flow has grown at a 37.9% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Each dollar of retained earnings has created $5.91 of earning power — management is an exceptional capital allocator.
- ★Visa Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 97.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Visa Inc. scores 99/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
Risks
- ⚠Gross margin of 18.6% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠Despite buyback spending, shares outstanding increased in 4 out of 4 years — stock-based compensation is offsetting repurchases.
- ⚠PEG ratio of 31.44 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠Insiders have sold $14.2M worth of stock in the past 3 months — significant insider liquidation.
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 $205?
The market implies -0.4% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -4.9%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $327?
The market implies +13.9% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +13.4%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.
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 pricing this stock without strong emotion in either direction"
"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: PGR vs V
Is The Progressive Corporation or Visa Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, PGR trades at a 28.6% margin of safety (intrinsic value $287 vs. price $205), compared to V's -7.6% margin of safety (intrinsic $304 vs. $327).
Which stock has a wider economic moat, The Progressive Corporation or Visa Inc.?▼
V scores 99/100 (Wide moat), while PGR scores 99/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is The Progressive Corporation in financial distress?▼
PGR's Altman Z-Score of 1.9 places it in the Grey zone, signaling elevated bankruptcy risk. V scores 8.1 (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, The Progressive Corporation or Visa Inc.?▼
The Progressive Corporation (PGR) generates a 13.0% free cash flow yield, compared to Visa Inc.'s 3.3%. 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, The Progressive Corporation or Visa Inc.?▼
V earns 38.4% ROIC versus PGR's 28.6%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, The Progressive Corporation's or Visa Inc.'s?▼
V's dividend earns a safety score of 94/100 (Very Safe), compared to PGR's 94/100 (Very Safe). V has raised its dividend for 3 consecutive years.