Compare Fair Isaac Corporation (FICO) vs Intuit Inc. (INTU) Stock

Intuit Inc. (INTU) offers the better valuation at 29.9x trailing P/E (17.6x forward), making it the more compelling value choice. Analysts rate Fair Isaac Corporation (FICO) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Intuit Inc. (INTU) is the cheapest at 29.9x versus Fair Isaac Corporation at 53.1x. On forward P/E, Intuit Inc. is actually cheaper at 17.6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Intuit Inc. wins at 1.21x versus Fair Isaac Corporation's 1.24x — a reasonable growth-adjusted valuation.

Over the past 5 years, Fair Isaac Corporation (FICO) delivered a total return of +198.6%, compared to +4.9% for Intuit Inc. (INTU). A $10,000 investment in FICO five years ago would be worth approximately $30K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FICO returned +1316% versus INTU's +350.0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Intuit Inc. (INTU) is the lower-risk stock at 0.93β versus Fair Isaac Corporation's 1.00β — meaning FICO is approximately 8% more volatile than INTU relative to the S&P 500.

Fair Isaac Corporation (FICO) is the more profitable company, earning 32.7% net margin versus 20.5% for Intuit Inc. — meaning it keeps 32.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FICO leads at 46.5% versus 26.1% for INTU. At the gross margin level — before operating expenses — FICO leads at 82.2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Intuit Inc. (INTU) is the more undervalued stock at a PEG of 1.21x versus Fair Isaac Corporation's 1.24x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Intuit Inc. (INTU) trades at 17.6x forward P/E versus 33.9x for Fair Isaac Corporation — 16.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for INTU: 78.0% to $728.11.

In this comparison, INTU (1.0% yield) pays a dividend. FICO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Fair Isaac Corporation (FICO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.00), +1316% 10Y return). Both have compounded well over 10 years (FICO: +1316%, INTU: +350.0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. INTU pays a dividend while FICO does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.