EFX vs FICO: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
EFX and FICO are similarly sized, but EFX trades noticeably cheaper on forward earnings (17.00x vs 20.99x): the market is paying up for FICO's profile and pricing EFX more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
EFX vs FICO: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | EFX | FICO | What it tells you |
|---|---|---|---|
| Market cap | $20.28B | $24.25B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 17.00 | 20.99 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 30.28 | 32.47 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.32 | 1.29 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 18% of range | 22% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
Reading it: EFX is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how EFX and FICO affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. EFX and FICO share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined EFX and FICO exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Equifax (EFX) do?
Equifax is one of the three nationwide US consumer credit bureaus, alongside Experian and TransUnion, but it has spent the last decade shifting its center of gravity toward data analytics. Its largest and fastest-growing segment, Workforce Solutions, sells income and employment verification through The Work Number, a proprietary database that ended 2025 with roughly 209 million active records and 813 million total records. The rest of the company splits between US Information Solutions (traditional credit reporting and analytics) and International.
What does Fair Isaac Corporation (FICO) do?
Fair Isaac Corporation, known by its ticker FICO, is best known for the FICO Score, the credit score most U.S. lenders use to gauge consumer credit risk. The business splits into two segments: Scores, which licenses the FICO Score to lenders and the three credit bureaus (Equifax, Experian, TransUnion) at extraordinarily high margins (the Scores segment operating margin has run around 91%), and Software, which sells the FICO Platform and analytic decisioning tools to banks, insurers, and other enterprises on a recurring-revenue model. Scores is the profit engine, while Software is the growth-and-stickiness story as customers migrate onto the platform.
EFX vs FICO: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- EFX drivers: Workforce Solutions and The Work Number; Mortgage and lending cycle leverage.
- FICO drivers: Scores pricing power; Software platform shift.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Equifax is cyclical and rate-sensitive, so a weak mortgage market or a rise in unemployment can pressure both credit-inquiry and verification volumes. For FICO, the biggest 2026 risk is competitive and regulatory: FHFA and the GSEs now allow VantageScore 4.0 (a joint venture of the three credit bureaus) alongside FICO for mortgages, threatening FICO's long-held mortgage-scoring monopoly and inviting pricing pressure.
EFX or FICO: which should you pick?
EFX vs FICO: the full fundamentals
EFX. Equifax carries a premium valuation, with a forward P/E in the high-teens to low-20s that sits above the broader business-services median. That reflects the durability of The Work Number data moat and expectations for a lending-cycle recovery. The multiple leaves little cushion if mortgage volumes or hiring soften.
FICO. FICO grew fiscal 2026 revenue and EPS more than 20% and 30% respectively, powered by Scores price increases and a mortgage-origination rebound. Despite that growth the shares fell sharply during 2026 (down roughly a third or more from their peak) as competition and pricing changes compressed the multiple from a trailing P/E near 40x toward a forward P/E around 24x, still a premium to the broader software group.
Headline figures (approximate, JULY 2026): EFX shows revenue (fy2025) ~$6.07B, revenue growth (fy2025) ~7% YoY, q1 2026 revenue ~$1.65B (up ~14%), workforce solutions revenue (fy2025) ~$2.58B; FICO shows revenue (ttm) ~$2.25B, fy2026 revenue guidance ~$2.45B (up ~23% YoY), q2 fy2026 revenue ~$692M, q2 fy2026 gaap eps ~$11.14.
The bottom line: EFX vs FICO
EFX and FICO are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined EFX and FICO exposure against your real portfolio. It is not an investment adviser.
Wondering how EFX or FICO fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Equifax with AI
Connect the broker you already use and ask Walnut's AI how EFX fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between EFX and FICO?
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Equifax is one of the three nationwide US consumer credit bureaus, alongside Experian and TransUnion, but it has spent the last decade shifting its center of gravity toward data analytics. Fair Isaac Corporation, known by its ticker FICO, is best known for the FICO Score, the credit score most U.S. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is EFX or FICO the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, EFX or FICO?
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On forward P/E (as of August 2026), EFX trades at 17.00x and FICO at 20.99x, so EFX is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both EFX and FICO?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of EFX vs FICO?
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EFX: Equifax is cyclical and rate-sensitive, so a weak mortgage market or a rise in unemployment can pressure both credit-inquiry and verification volumes. It operates under heavy regulatory scrutiny (the CFPB, FTC, and FCRA), and the memory of its 2017 data breach is a reminder that a security or privacy failure carries large financial and reputational cost. The Work Number depends on continued employer payroll contributions, which could face pushback or competition, and government-related verification revenue can be lumpy. Finally, the stock often trades at a premium valuation, which leaves limited margin for error if growth disappoints. FICO: The biggest 2026 risk is competitive and regulatory: FHFA and the GSEs now allow VantageScore 4.0 (a joint venture of the three credit bureaus) alongside FICO for mortgages, threatening FICO's long-held mortgage-scoring monopoly and inviting pricing pressure. FICO's own move to a roughly $0.99-per-score-plus-fee mortgage model sharply cut average per-score fees, and investors are debating whether that defends share or signals eroding pricing power. The stock also remains richly valued relative to broad software peers, so any disappointment in Scores growth or platform adoption can drive large drawdowns (as seen in 2026). Concentration is a further concern: an outsized share of profit comes from one high-margin Scores franchise, and the three bureaus are simultaneously distribution partners and backers of the competing VantageScore. Political and public scrutiny of credit-score pricing adds ongoing headline risk.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell EFX or FICO; figures are approximate and dated (as of August 2026). Verify current data before investing.