Compare Stocks › ABBV vs SBUX

AbbVie Inc. (ABBV) vs Starbucks Corporation (SBUX): Which Is the Better Buy in 2026?

As of 2026-11-01, ABBV is overvalued at $295, with a DCF intrinsic value of $172 and a margin of safety of -71%. SBUX is overvalued at $104, with an intrinsic value of $45 and a margin of safety of -131%. Of the two, ABBV has the wider margin of safety.

ABBV

AbbVie Inc.

$294.89

SBUX

Starbucks Corporation

$103.67

Rewards

ABBV

★AbbVie Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Gross margin of 73.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★AbbVie Inc. scores 82/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.

SBUX

★Starbucks Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Starbucks Corporation scores 71/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

ABBV

⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
⚠Insiders have sold $8.2M worth of stock in the past 3 months — significant insider liquidation.
⚠Free cash flow has declined at a 9.8% CAGR over the past 4 years — a concerning trend.

SBUX

⚠Gross margin of 22.4% is low, suggesting a competitive or commodity-like market with limited pricing power.
⚠FCF yield of 2.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠Trailing P/E of 46.9x is 34% above the historical average of 35.1x — the stock trades at a premium to its own history.

Key Valuation Metrics

Learn more →

ABBV

SBUX

Valuation

N/A

Free Cash Flow

$3.19B

N/A

FCF Yield

2.70%

50.67

Trailing P/E

46.91

18.24

Forward P/E

27.73

Quality & Moat

29.08%

ROIC

17.05%

N/A

ROE

N/A

73.72%

Gross Margin

22.43%

0.60

PEG Ratio

1.14

Balance Sheet Safety

N/A

Net Debt / Equity

N/A

Interest Coverage

N/A

2.03

Net Debt / EBITDA

3.24

2.35%

Dividend Yield

2.43%

ABBV: 5Ties: 2SBUX: 1

ABBVSBUX

Historical Fundamentals

Learn more →

ABBV

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.

SBUX

$1 Retained Earnings Test

Learn more →

ABBV

N/A

Net losses over 3 years — test not applicable

Company had negative cumulative retained earnings

Σ Retained

$-19.85B

Δ Market Cap

+$118.02B

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

SBUX

$-9.28

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$1.95B

Δ Market Cap

$-18.13B

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 →

ABBV

71.5% Overvalued

Price is 71.5% above estimated fair value

Current Price: $294.89

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $172.00

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

SBUX

130.8% Overvalued

Price is 130.8% above estimated fair value

Current Price: $103.67

Strongly undervalued

Strongly overvalued

Fair Value: $44.91

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

Learn more →

ABBV

Requires positive FCF to compute implied growth rate.

SBUX

What growth rate is the market pricing in at $104?

+25.6%

Market-Implied Owner Earnings Growth

Standard FCF implies +18.1%

The market implies +25.6% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +18.1%, reflecting heavy growth investment.

Economic Moat Score

Learn more →

ABBV

82/100

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.

SBUX

71/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Margin Stability is the area most vulnerable to competitive pressure.

Forensic Accounting

Learn more →

ABBV

-2.86

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.

SBUX

-2.77

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

Learn more →

ABBV

Insiders 0.1%Institutions 77.4%Retail & Other 22.5%

No. of Institutional Holders5,303

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.

SBUX

Insiders 0.1%Institutions 86.9%Retail & Other 13.0%

No. of Institutional Holders2,957

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

Learn more →

ABBV

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

SBUX

Buys (3M)

Buys (12M)

Total value (12M): $994,500

KNUDSTORP JORGEN VIG

Director

$994,500

@ $85.00 · 2025-11-10

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

Learn more →

ABBV

Sells (3M)

Sells (12M)

Total value (12M): $18.92M

DONOGHOE NICHOLAS

Officer

$8.18M

@ $250.00 · 2026-08-14

PURDUE DAVID RYAN

Officer

$1.22M

@ $233.56 · 2026-03-04

SIATIS PERRY C.

General Counsel

$4.38M

@ $234.39 · 2026-03-02

SIATIS PERRY C.

General Counsel

$5.15M

@ $230.00 · 2026-02-25

SALEKI-GERHARDT AZITA

Chief Operating Officer

$8.41M

@ $198.42 · 2025-08-12

DONOGHOE NICHOLAS

Officer

$2.64M

@ $198.51 · 2025-08-05

STEWART JEFFREY RYAN

Officer

$12.36M

@ $210.08 · 2025-03-31

REENTS SCOTT T.

Chief Financial Officer

$3.75M

@ $212.34 · 2025-03-14

GONZALEZ RICHARD A

Director

$20.26M

@ $205.45 · 2025-03-03

RICHMOND TIMOTHY J

Officer

$4.47M

@ $210.45 · 2025-03-03

SIATIS PERRY C.

General Counsel

$5.82M

@ $208.69 · 2025-03-03

RICHMOND TIMOTHY J

Officer

$6.07M

@ $202.90 · 2025-02-26

BUCKBEE KEVIN K

Officer

$3.85M

@ $203.41 · 2025-02-26

SIATIS PERRY C.

General Counsel

$1.14M

@ $197.90 · 2025-02-20

BUCKBEE KEVIN K

Officer

$310,032

@ $172.24 · 2024-12-16

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

SBUX

Sells (3M)

Sells (12M)

Total value (12M): $2.24M

BREWER BRADY

Officer

$58,800

@ $100.00 · 2026-10-20

BREWER BRADY

Officer

$155,501

@ $94.76 · 2026-10-05

BREWER BRADY

Officer

$235,382

@ $105.60 · 2026-09-04

BREWER BRADY

Officer

$236,252

@ $105.99 · 2026-08-05

BREWER BRADY

Officer

$231,816

@ $104.00 · 2026-07-06

BREWER BRADY

Officer

$58,800

@ $100.00 · 2026-06-11

BREWER BRADY

Officer

$154,796

@ $94.33 · 2026-06-05

BREWER BRADY

Officer

$233,621

@ $104.81 · 2026-05-05

KELLY SARA

Officer

$210,000

@ $105.00 · 2026-04-29

BREWER BRADY

Officer

$58,800

@ $100.00 · 2026-04-17

BREWER BRADY

Officer

$147,690

@ $90.00 · 2026-04-06

BREWER BRADY

Officer

$58,800

@ $100.00 · 2026-03-09

BREWER BRADY

Officer

$159,374

@ $97.12 · 2026-03-05

KELLY SARA

Officer

$242,800

@ $97.12 · 2026-03-05

KELLY SARA

Officer

$1.94M

@ $101.37 · 2024-11-29

RUGGERI RACHEL

Chief Financial Officer

$148,414

@ $99.54 · 2024-11-21

RUGGERI RACHEL

Chief Financial Officer

$143,850

@ $99.07 · 2024-11-15

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

Learn more →

ABBV

😏Greed(72/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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.

SBUX

😏Greed(68/100)

"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 →

ABBV

⚪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: Greed (72)

SBUX

⚪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: Greed (68)

View ABBV Full Analysis View SBUX Full Analysis

Frequently Asked Questions: ABBV vs SBUX

Is AbbVie Inc. or Starbucks Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, ABBV trades at a -71.5% margin of safety (intrinsic value $172 vs. price $295), compared to SBUX's -130.8% margin of safety (intrinsic $45 vs. $104).

Which stock has a wider economic moat, AbbVie Inc. or Starbucks Corporation?▼

ABBV scores 82/100 (Wide moat), while SBUX scores 71/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is AbbVie Inc. in financial distress?▼

ABBV's Altman Z-Score of 2.4 places it in the Grey zone, signaling elevated bankruptcy risk. SBUX scores 2.5 (Grey 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, AbbVie Inc. or Starbucks Corporation?▼

ABBV earns 29.1% ROIC versus SBUX's 17.1%. 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, AbbVie Inc.'s or Starbucks Corporation's?▼

ABBV's dividend earns a safety score of 39/100 (Unsafe), compared to SBUX's 24/100 (Unsafe). ABBV has raised its dividend for 3 consecutive years.