NIKE, Inc. (NKE) vs Thermo Fisher Scientific Inc. (TMO): Which Is the Better Buy in 2026?
As of 2026-09-17, NKE is undervalued at $36, with a DCF intrinsic value of $164 and a margin of safety of 78%. TMO is overvalued at $648, with an intrinsic value of $410 and a margin of safety of -58%. Of the two, NKE has the wider margin of safety.
Rewards
- ★NIKE, Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
- ★NIKE, Inc. scores 71/100 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.
- ★Altman Z-Score of 3.85 indicates very low bankruptcy risk — the company is firmly in the safe zone.
Risks
- ⚠8 insider sales with no purchases in the past 3 months — insiders are reducing their exposure.
- ⚠Free cash flow has declined at a 23.5% CAGR over the past 4 years — a concerning trend.
- ⚠FCF yield of 2.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠8 insider sales totaling $41.5M with no purchases in the past 3 months — insiders are reducing their exposure.
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 $36?
The market implies +5.6% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +12.8%, reflecting heavy growth investment.
What growth rate is the market pricing in at $648?
The market implies +15.3% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +18.6%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
Narrow moat with margin stability as the key competitive advantage. Improving roic consistency would strengthen the moat.
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 pessimistic — investigate whether fears are temporary or structural"
"Market is optimistic — be cautious and ensure you have a margin of safety"
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: NKE vs TMO
Is NIKE, Inc. or Thermo Fisher Scientific Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, NKE trades at a 78.1% margin of safety (intrinsic value $164 vs. price $36), compared to TMO's -58.1% margin of safety (intrinsic $410 vs. $648).
Which stock has a wider economic moat, NIKE, Inc. or Thermo Fisher Scientific Inc.?▼
NKE scores 71/100 (Wide moat), while TMO scores 60/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Which company has better free cash flow, NIKE, Inc. or Thermo Fisher Scientific Inc.?▼
NIKE, Inc. (NKE) generates a 3.6% free cash flow yield, compared to Thermo Fisher Scientific Inc.'s 2.6%. 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, NIKE, Inc. or Thermo Fisher Scientific Inc.?▼
NKE earns 17.9% ROIC versus TMO's 7.2%. 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, NIKE, Inc.'s or Thermo Fisher Scientific Inc.'s?▼
TMO's dividend earns a safety score of 94/100 (Very Safe), compared to NKE's 34/100 (Unsafe). TMO has raised its dividend for 3 consecutive years.